Zijin Mining plans to acquire Chifeng Gold for 18.258 billion yuan, as mergers and acquisitions in the gold industry become frequent.

Source: Taishan Finance

Taishan Finance reporter Li Di

On March 23, Chifeng Gold (600988.SH) and Zijin Mining (601899.SH) released announcements simultaneously. Zijin Mining plans to acquire, through its wholly owned subsidiary, the shares held by Li Jinyang, the actual controller of Chifeng Gold, and his concerted parties, and also to subscribe for Chifeng Gold’s H-shares in a targeted share placement. The total consideration for the relevant transactions is approximately RMB 18.258 billion. After the transaction is completed, Zijin Mining will obtain control of Chifeng Gold. Chifeng Gold’s actual controller will change from Li Jinyang to the Finance Bureau of Shanghang County.

According to the announcement, the above transaction is divided into two parts. Zijin Gold International will purchase a total of 242 million shares of Chifeng Gold’s A shares held by the other party at RMB 41.36 per share, with a transaction amount of approximately RMB 10.006 billion; Zijin Gold will subscribe for 311 million shares of Chifeng Gold’s H shares in a targeted share placement at HK$30.19 per share, with a subscription amount of approximately HK$9.386 billion (equivalent to approximately RMB 8.252 billion). The total consideration for the transaction is approximately RMB 18.258 billion.

Li Jinyang, the shareholder transferring the equity in this deal, is 43 years old. He is the widow of Zhao Meiguang, the founder of Chifeng Gold. In December 2021, Zhao Meiguang passed away due to illness. All of his personal estates (including the controlling stake in Chifeng Gold) were inherited solely by his spouse, Li Jinyang. It is understood that Li Jinyang does not hold a position in the company; Chifeng Gold is governed by a management team led by Wang Jianhua, the chairman.

Wang Jianhua is an old hand in the mining industry. This year he is 70 years old. He previously served as chairman and Party secretary of Shandong Gold Group Co., Ltd., and as a director and president of Zijin Mining Group Co., Ltd. He joined Chifeng Gold in September 2018 and has served as the company’s chairman from December 2019 to the present.

At a performance briefing held on March 23, Lin Hongfu, vice chairman of Zijin Mining and president, said that from a medium- to long-term perspective, the logic of gold maintaining high prices or seeing further upside remains unchanged. This acquisition aligns with the company’s strategic arrangement prioritizing corporate resources. Chifeng Gold has favorable prospects for finding ore and potential to increase production capacity in Ghana, Laos, and domestic mining sites.

It is reported that Zijin Mining’s acquisition case is not an isolated example. In recent years, mergers and consolidation among leading gold mining enterprises have occurred from time to time. At the end of last year, the integration of two major gold enterprises in Yantai was completed. The acquisition of Shandong Jindu State Capital Investment Group Co., Ltd. by Shandong Zhaojin Group Co., Ltd. was officially completed, with the equity change taking effect. Earlier this year, Hunan Gold released a major asset restructuring plan. It plans to acquire all equity interests in Gold Tianyue and Central South Metallurgy through issuance of shares, bringing the core assets of the super-large gold mine field, Pingjiang Wanggu, valued at about RMB 600 billion, into the listed company.

From the perspective of Chifeng Gold, the company operates 6 gold mines and 1 polymetallic mine. Its business covers countries and regions including China, Southeast Asia, and West Africa. In 2025, the company’s revenue was RMB 12.64 billion, up 40.03% year over year, and its net profit attributable to shareholders was RMB 3.082 billion, up 74.70% year over year.

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