Chinese company acquires stake in Allied Gold mine on Sudan-Ethiopia border

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Canadian mining company Allied Gold sold a 9.2 percent stake to Zijin Gold International, a subsidiary of a firm backed by Chinese state-owned corporations and the Abu Dhabi Investment Authority, in a deal valued at just under $300 million. The agreement grants Zijin partial ownership of mining assets in Mali, Cote d'Ivoire, and the Kurmuk concession in Ethiopia's Benishangul-Gumuz region. The Kurmuk site is located approximately 20km from a Sudanese area where the Rapid Support Forces operate and where mass graves were recently discovered. This transaction follows previous failed acquisition attempts involving both Emirati interests and Zijin, and marks the alignment of Chinese and Emirati financial footprints within the Ethiopian mining sector.

Consequences

Allied Gold plans to utilize the transaction proceeds to expand operations across its three mining sites, with an expected production target of 240,000 to 270,000 gold ounces at the Kurmuk site by 2027. Given the company's stated willingness to consider further offers, additional stakes in Allied Gold may be sold to other buyers in the near future.

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