KEY TAKEAWAYS
- Zijin Mining is front-runner to acquire Barrick’s Tongon gold mine in Ivory Coast.
- The asset is valued up to $500M, with operations likely ending by 2027.
- China’s mining investments in Africa exceed $50B since 2010.
- Barrick is refocusing on copper and high-return African/Middle East assets.
- Final decision expected by July’s end; local bidder still in contention.
Zijin Mining Accelerates Africa Expansion with Tongon Gold Bid
DAKAR — Zijin Mining is leading the race to acquire Barrick Gold’s Tongon mine in northern Ivory Coast, in a deal potentially worth $500 million, according to industry sources.
The bid by Zijin Mining, one of China’s largest gold and copper producers, signals Beijing’s strategic push into West Africa’s mining sector. The Tongon gold mine — expected to shut down by 2027 due to declining resources — produced 148,000 ounces of gold in 2024, valued at over $500 million at current prices.
Barrick has appointed TD Securities and Treadstone Resource Partners to advise on the sale. While a local Ivorian bidder is reportedly in contention, sources say Zijin Mining is ahead, backed by “deep financial capacity” and a global acquisition strategy that prioritizes control over partnership.
Strategic Shifts from Canada to Côte d’Ivoire
Barrick Gold, the world’s third-largest gold producer, is divesting shorter-life gold mines to concentrate on copper and strategic assets. Recent exits include Canada’s Hemlo mine and a $1 billion sale of its Donlin Gold stake in Alaska. The Tongon mine, of which Barrick holds an 89.7% share, marks its latest strategic retreat.
Zijin Mining’s aggressive expansion includes the $1 billion purchase of Newmont’s Akyem mine in Ghana and a stake in Canada-based Montage Gold, which is developing the Kone project in Ivory Coast.
The Chinese mining giant’s interest in the Tongon mine underscores China’s broader investment strategy. Since 2010, Chinese state and corporate entities have funneled over $50 billion into African mining, targeting gold, cobalt, bauxite, and copper.
Regulatory Risk and Local Pushback
Ivory Coast’s government prefers partnership-based deals to retain domestic control, but Zijin Mining has shown no sign of aligning with that model. Officials at the Ministry of Mines declined to confirm any requirements, citing a lack of current information on the transaction.
The outcome is expected by late July, pending regulatory approval. A delay or withdrawal remains possible if terms cannot be reconciled.
Political Volatility and the Shift to Safer Jurisdictions
Barrick’s retreat comes amid increasing political risk across West Africa. Earlier this month, gold was forcibly removed from Barrick’s Loulo-Gounkoto mine in Mali via military helicopter — a flashpoint in an ongoing dispute with Mali’s transitional government.
Ivory Coast has maintained a more stable investment climate, helping attract global miners including Montage and Perseus. For Zijin Mining, securing Tongon would expand its operational base and consolidate its influence in Africa’s gold-rich belt.
As Western miners rebalance portfolios under pressure from regulatory and ESG concerns, Chinese companies are moving swiftly into the vacuum — with Zijin Mining leading the charge.
