New | Chinese firm Zijin Mining Group buys US$710m gold and copper assets
Mainland mining group plans 10 billion yuan placement to finance deals with Canadian firms
Zijin Mining Group will buy US$710 million worth of gold and copper mining assets from two Canadian companies in the Democratic Republic of Congo and Papua New Guinea with funds raised through a private placement in the Shanghai stock market.
Zijin told the Shanghai and Hong Kong stock exchanges on Tuesday it would buy a 49.5 per cent stake in the Kamoa copper project in the Democratic Republic of Congo from Ivanhoe Mines for US$412 million.
Zijin already owns 9.9 per cent of Ivanhoe, which recorded a net loss of US$52.9 million last year following a net loss of US$80.6 million in 2013.
Fujian-based Zijin will also pay Barrick Gold Corp US$298 million for a 49.5 per cent interest in the Porgera gold mine in Papua New Guinea.
The two companies have also entered into a strategic agreement to collaborate on future projects.
"We are excited to leverage our competitive strengths together, to start with at Porgera, while exploring additional joint opportunities for the future," Zijin chairman Chen Jinghe said in a statement.
"Substantial synergies and value may be realised by bringing to Barrick the expertise and relationships that Zijin offers, including low-cost capital from Chinese institutions, leading Chinese engineering and construction skills, and Chinese machinery," Toronto-based Barrick said.
