Dakar — China’s Zijin Mining is the front-runner to acquire Barrick Mining’s Tongon gold mine in northern Ivory Coast for as much as $500m, two sources close to the matter said.
Barrick, the world’s third-largest gold producer, is pivoting towards high-margin, long-life assets, with a growing focus on copper and operations in Africa and the Middle East.
It suspended activity at its flagship Loulo-Gounkoto complex in neighbouring Mali after the country’s military government blocked exports, detained staff and seized three tonnes of gold in a dispute over its new mining code.
The two sources said Barrick had appointed Canada-based TD Securities and Australia-based Treadstone Resource Partners to advise on the sale of the Tongon mine, which produced 148,000 ounces of gold in 2024, worth $504m at current prices. Barrick expects the mine to placed under care and maintenance by 2027 due to declining resources.
The Canadian miner said it does not comment on market speculation. TD Securities and Treadstone did not respond to requests for comment.
Zijin, one of China’s biggest gold and copper producers, has been expanding rapidly, with recent acquisitions in South America, Central Asia and Africa.
Its interest in Tongon comes after Chinese state-owned enterprises have invested more than $50bn in African mining projects since 2010, with a strong focus on bauxite, copper, cobalt, and gold.
One of the sources, a mining industry executive, said Zijin is leading the bidding for Tongon due to its deep financial resources. The asset is valued at about $300m and Zijin is expected to offer significantly more to secure it, potentially as much as $500m, the source added.
A second mining executive confirmed Zijin’s lead but said a local Ivorian company, which he declined to identify, was also in contention.
The executive added that Zijin did not appear to favour forming a partnership to acquire the Tongon mine, despite that being the Ivorian government’s preferred option.
Zijin did not respond to a request for comment. Officials at the Ivory Coast Ministry of Mines said they did not have the latest information on the proposed sale and declined to comment further on the government’s requirements for the deal.
A final decision on the winning bidder is expected later this month, pending regulatory approval, the first executive said. The deal could also fall through or be delayed.
Barrick has been reshaping its portfolio, completing a $1bn sale of its 50% stake in the Donlin Gold Project in Alaska and agreeing to sell its historic Hemlo mine in Canada, marking its exit from domestic gold production.
In Mali, a military helicopter airlifted gold from the Loulo-Gounkoto site earlier this month, just days after a court-appointed administrator announced plans to sell bullion from the facility to fund operations.
Zijin took a 9.9% stake in Canada-based Montage Gold, which is developing the Koney Gold project in Ivory Coast, last July before paying $1bn for Newmont’s Akyem gold mine in October.
Barrick holds an 89.7% stake in Tongon, the Ivorian state 10% and local investors the remaining 0.3%.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.