CHINA’S Zijin Mining has emerged as the leading contender to purchase Barrick Mining’s Tongon gold operation in northern Ivory Coast, said Reuters citing sources familiar.
Zijin could bid up to $500m, the newswire said in a report on Thursday.
The Canadian mining giant, ranked as the world’s third-largest gold producer, is restructuring its portfolio to concentrate on high-margin, long-life assets whilst expanding its copper focus and strategic African and Middle Eastern operations, said Reuters.
This shift follows operational challenges at its flagship Loulo-Gounkoto complex in neighbouring Mali, where the military government halted exports, detained personnel, and confiscated three tonnes of gold amid disputes over new mining regulations.
Barrick has retained Toronto-based TD Securities and Australian firm Treadstone Resource Partners to oversee the Tongon sale, said Reuters.
Tongon generated 148,000 ounces of gold in 2024, valued at $504m at current market rates. However, Barrick anticipates placing the facility into care and maintenance by 2027 as resources diminish, the newswire said.
Zijin, among China’s premier gold and copper producers, has embarked on an expansion strategy in South America, Central Asia, and Africa and is part of $50bn in African mining investment by China’s state-owned entities since 2010, said Reuters.
Industry sources suggest Zijin’s substantial financial capacity positions it advantageously, with the asset valued around $300m, though the Chinese firm may bid significantly higher.
A local Ivorian company reportedly remains in contention, though Zijin appears reluctant to pursue the African government’s preferred partnership approach, said Reuters.
The successful bidder is expected to be announced this month, subject to regulatory clearance. Barrick maintains an 89.7% stake in Tongon, with the Ivorian state holding 10% and local investors retaining 0.3%.
