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| Zijin Mining Tongon gold mine |
China’s Zijin Mining Targets West African Expansion
Zijin Mining is the front-runner to acquire Barrick Gold’s Tongon gold mine in northern Ivory Coast for up to $500 million. Barrick is restructuring its portfolio to focus on long-life, high-margin assets, especially copper and strategic sites in Africa and the Middle East. In contrast, Zijin seeks to expand its West African footprint, leveraging deep capital reserves and a global acquisition strategy. As a result, Tongon has become a key asset in the competition between state-linked Chinese firms and global mining majors.
Strategic Value of Tongon and Zijin's Bid Position
Tongon produced 148,000 ounces of gold in 2024, valued at $504 million at current prices. Barrick plans to place the mine into care and maintenance by 2027 due to resource decline. Despite this, Zijin is reportedly offering well above the mine’s estimated $300 million value to secure control. This move follows Zijin’s aggressive acquisitions, including Newmont’s Akyem gold mine for $1 billion and equity in Montage Gold, which also operates in Ivory Coast. Therefore, Tongon fits Zijin’s strategic push into politically dynamic but resource-rich regions.
Geopolitical and Regulatory Implications of the Sale
Barrick’s retreat from Mali, after military interference and gold seizures, has accelerated its divestments across West Africa. Meanwhile, Ivory Coast prefers joint ventures with local firms, but Zijin appears uninterested in partnerships. This misalignment could complicate regulatory approval, despite Zijin’s financial edge. Furthermore, local sentiment and government policy may influence the final outcome. A final decision is expected this month, but regulatory delays remain possible. In sum, the Tongon transaction reflects broader geopolitical currents in global mining investment.
ScrapInsight Commentary
Zijin’s pursuit of the Tongon mine underscores China's growing influence in African mining and the shifting priorities of Western miners like Barrick. If approved, this acquisition may alter regional gold flows and increase competition for scrap gold sourcing. Regulatory tensions and geopolitical risks, however, remain critical variables in asset monetization strategies.
