African Mining Circle, July 24th: According to Reuters, global mining giant Barrick plans to sell its Tongon gold mine in Côte d'Ivoire for a maximum of 500 million US dollars. China's Zijin Mining has emerged as the leading bidder in this acquisition. This transaction not only reflects Barrick's strategic shift but also highlights the continuous expansion of Chinese enterprises in the African mining sector. As the world's third-largest gold producer, Barrick is accelerating the adjustment of its asset portfolio, shifting its focus to high-profit, long-term core assets, and concentrating on copper mines and strategic businesses in the Middle East and Africa. However, its operational crisis in neighboring Mali has accelerated this process - due to the Malian military government's use of a new mining law dispute as a reason to block exports, detain employees, and seize 3 tons of gold, Barrick has suspended the operation of its flagship mine, Loulo-Gounkoto.
The Tongon gold mine being sold is a core asset of Barrick in Côte d'Ivoire. According to Barrick's data, the mine is expected to produce 148,000 ounces of gold in 2024 (equivalent to approximately 504 million US dollars at the current gold price), but due to a decline in resource reserves, it is expected to enter a maintenance shutdown stage in 2027. To facilitate the transaction, Barrick has entrusted Canadian TD Securities and Australian Treadstone Resources Partners to serve as financial advisors. As one of the largest gold and copper producers in China, Zijin Mining has significant competitive advantages in the bidding. In recent years, through a series of cross-border acquisitions (in South America, Central Asia, and Africa), it has become an important player in the global mining market. This targeting of the Tongon mine is not only a precise layout for high-quality resources in Africa, but also continues its strategic logic of "resources are king". A mining executive involved in the transaction disclosed: "Zijin leads the bidding with its strong financial strength. Although the current valuation of the mine is approximately 300 million US dollars, considering its resource potential and regional advantages, Zijin may offer a price close to 500 million US dollars to ensure the transaction." Another insider added: "An unnamed local enterprise in Côte d'Ivoire also participated in the competition, but Zijin has not yet expressed a willingness to cooperate in the acquisition (the Côte d'Ivoire government prefers this model)."
Officials from the Ivory Coast Ministry of Mines stated that they have not received any updates on the transaction and it is not appropriate to disclose the specific requirements of the government. Barrick and Zijin Mining have both declined to comment on the market rumors, and the financial advisory firm TD Securities and Treadstone have also not responded. According to the first executive involved in the transaction, the final bidding result may be determined this month (subject to regulatory approval), but the transaction still carries risks of failure or delay. This sale of the Tongon mine is part of Barrick's global asset optimization strategy. Previously, it completed the sale of 50% of the Donlin gold mine in Alaska (for $1 billion) and agreed to divest the historically significant Hemlo gold mine in Canada, marking its official exit from gold mining in North America. In Africa, the dispute between Barrick and Mali is still ongoing: earlier this month, a military helicopter transported gold from the Loulo-Gounkoto mine. Previously, a court-appointed administrator had planned to sell the mine's gold to maintain operations. This incident further strengthened Barrick's determination to scale back its business in Africa.
Since 2010, Chinese enterprises have invested over 50 billion US dollars in the African mining sector, focusing on resources such as bauxite, copper, cobalt and gold. Zijin Mining's recent bid for the Tongon mine is a prime example of this trend – by acquiring mature mines, they quickly acquire high-quality resources and help upgrade domestic production capacity and expand their global presence. "Africa is one of the last 'value grounds' in global mining," an international mining analyst pointed out. "Chinese enterprises, leveraging their financial, technological and industrial chain advantages, are transforming from 'participants' to 'rule-makers'." With Zijin Mining leading the bidding, this $500 million acquisition battle will not only reshape the mining landscape in Côte d'Ivoire, but also become another landmark event in Chinese enterprises' expansion in the African mining sector.
