Zijin Mining is leading the bid to acquire Barrick's Tongon gold mine in Côte d'Ivoire for 500 million.
Why is it so much for a mine that is coming to an end?
Because it's not about today's profits.
It's about tomorrow's government.
In 2024, Tongon produced 148,000 ounces worth more than 500 million at current prices.
But by 2027 it may be put on conservation.
However, China is willing to pay more.
Barrick is changing: less gold, more copper. Less risk, more margin.
Zijin is expanding: deeper into Africa, increasingly into gold, copper, bauxite and cobalt.
Since 2010, Chinese state-owned companies have invested 50 billion in mining in Africa.
They don't just buy resources. They buy "leverage".
What looks like a golden deal is a move in a big game of "resource chess"
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