Zijin Mining Plans to Buy Stake in Chifeng Jilong Gold Mining for Around $2.65 Billion

By Megan Cheah

Zijin Mining Group plans to spend around US$2.65 billion to raise its holding in Chifeng Jilong Gold Mining.

Zijin Gold, a subsidiary of Zijin Mining, is acquiring 241.9 million China-listed Chifeng shares for 10.01 billion yuan, equivalent to US$1.45 billion, from Li Jinyang and Zhejiang Hanfeng Venture Capital Partnership, who collectively make up Chifeng's single-largest shareholder currently.

Zijin Gold will also subscribe for 310.9 million newly issued Hong Kong-listed shares at 30.19 Hong Kong dollars apiece. Chifeng is expected to receive around HK$9.39 billion, or US$1.20 billion, through the share subscription.

Prior to the deal, Zijin held around 19 million shares in Chifeng. After the transactions complete, the Zijin Group will become the single largest shareholder of Chifeng with a nearly 26% stake.

Chifeng said having Zijin as a strategic investor could support operational improvements and eventually boost share value. The Zijin group is the largest gold producer in China and is among the top gold producers globally by production volume in 2025, it said.

Meanwhile, Zijin said the deal is likely to enhance its resource reserves, and will add a premium, locally listed gold platform to the company.

Both companies also reported earnings over the weekend, posting strong profit gains thanks to higher prices of metals, including for gold.

Chifeng's Hong Kong-listed shares plunged over 20% on Monday morning, while its Shanghai shares fell around 10%. Zijin Mining's shares dropped 3.0% in Hong Kong and fell 1.3% in China.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

March 22, 2026 22:42 ET (02:42 GMT)