4 days ago
China's Zijin in lead to buy Barrick's Ivory Coast Tongon gold mine: sources
Its interest in Tongon comes after Chinese state-owned enterprises have invested more than $50bn (R880.91bn) 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, adding that the asset is valued at around $300m (R5.29bn) and that Zijin is expected to offer significantly more to secure it, potentially up to $500m (R8.81bn).
A second mining executive confirmed Zijin's lead but said a local Ivorian company, which he declined to name, 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 up-to-date information on the proposed sale, declining 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 (R17.62bn) sale of its 50% stake in the Donlin Gold Project in Alaska and agreeing to divest 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, with the Ivorian state owning 10% and local investors holding the remaining 0.3%.
