Zijin Mining Group, China’s largest gold and copper producer, announced on Monday that it has entered into a definitive agreement to acquire the Raygorodok Gold Mine in Kazakhstan for $1.2 billion. The deal, executed through its subsidiaries Zijin Gold International and Jinha Mining, will transfer full ownership of the mine’s operating companies — RG Gold LLP and RG Processing LLP — to Zijin.

The Raygorodok mine is one of Kazakhstan’s largest gold-producing assets. Under the terms of the agreement, Zijin will acquire both the mining rights held by RG Gold LLP and the processing plant infrastructure operated by RG Processing LLP. The acquisition includes all associated assets and operations of the Raygorodok site, located in the north of the country.

Zijin announced that the purchase would be made by its international unit, Zijin Gold International, in coordination with Jinha Mining, a wholly owned subsidiary of Zijin Gold. In its official statement, the company said the transaction consolidates the mine and processing plant under a single ownership structure and aims to enhance operational integration.

Market Conditions and Strategic Timing

The announcement comes amid a notable increase in global gold prices, driven by persistent macroeconomic uncertainties. Gold has recently gained strength due to its perceived status as a safe-haven asset, with investors reacting to inflationary pressures and continued trade tensions between the United States and China.

While Zijin has not cited specific price projections as part of its justification for the deal, the acquisition aligns with a favorable market environment for gold producers. The timing also suggests that the company is leveraging high gold prices to expand its portfolio of overseas assets.

In April 2025, Zijin announced plans to spin off Zijin Gold International and pursue a public listing of the unit in Hong Kong. The reorganization is part of a broader restructuring of the company’s overseas gold holdings, and the Raygorodok acquisition appears to fall within that framework. It is not yet confirmed whether the Raygorodok assets will be included in the IPO, but their addition would likely increase the scale and appeal of the listing.

Asset Background and Operational Status

The Raygorodok Gold Mine is regarded as a key asset in Kazakhstan’s mining sector, although neither Zijin nor the current owners have disclosed recent production figures or reserve estimates. The mine has been in development and production for several years and includes both open-pit mining operations and an associated processing facility capable of refining ore on-site.

Ownership of the mine and plant has, until now, been split between two entities: RG Gold LLP, which holds the mineral rights and manages extraction, and RG Processing LLP, which owns and operates the processing plant. The new agreement transfers ownership of both companies to Zijin’s subsidiaries, unifying the two operations.

There has been no announcement regarding changes to the mine’s management or workforce. Zijin has not disclosed whether it plans to invest in new development, exploration, or capacity expansion at the site following the acquisition.

The deal remains subject to regulatory approvals in both Kazakhstan and China. Zijin did not specify the timeline for securing the necessary approvals or the expected closing date. No information has been provided on how the acquisition will be financed, such as whether it will involve debt issuance, internal funds, or external financing.

The government of Kazakhstan has not issued a public statement regarding the transaction. Kazakhstan has generally welcomed foreign investment in its mining sector, although large acquisitions typically undergo regulatory and legal review under the country’s subsoil use and foreign investment laws.

Regional and Global Deal Market

Kazakhstan has increasingly attracted attention from foreign mining firms due to its untapped mineral reserves and efforts to modernize its regulatory environment. The country is home to large deposits of gold, copper, uranium, and other strategic minerals. China, in particular, has expanded its presence in Central Asia’s mining and infrastructure sectors as part of its broader Belt and Road Initiative.

For Zijin, the Raygorodok acquisition strengthens its position in Central Asia and expands its international gold asset base. The company already operates mining projects in Africa, Southeast Asia, Europe, and South America. By acquiring one of Kazakhstan’s major gold assets, Zijin deepens its global diversification and secures long-term access to a key mineral resource.

This acquisition is one in a series of overseas moves by Chinese mining companies in recent years, as they seek to secure mineral supplies and reduce reliance on imports. Zijin’s international expansion has included investments in copper and gold assets in countries such as Serbia, the Democratic Republic of Congo, Colombia, and Papua New Guinea.

The acquisition comes as Zijin prepares to list Zijin Gold International on the Hong Kong Stock Exchange. The spin-off, announced in April, is intended to separate the company’s domestic and international gold operations and create a clearer capital structure for its overseas assets.

If the Raygorodok mine is included in the IPO portfolio, it could significantly enhance the valuation and operational scale of the new entity. However, Zijin has yet to provide details on the asset composition of Zijin Gold International or the specific timeline for the listing.