Zijin Gold International, the overseas gold mining subsidiary of Zijin Mining Group, has officially filed for a listing on the Hong Kong Stock Exchange. The state-owned behemoth’s prospectus indicates its goal is to net at least 24.9 billion Hong Kong dollars. That’s at least $3.2 billion derived directly from this smart maneuver! Meanwhile, China has been intensifying its activities to bolster its gold reserves. This decision is in line with the nation’s growing desire to protect these precious metals.
Zijin Mining Group, through its various subsidiaries around the world, is now one of the biggest mining companies in all of China, focused mainly on gold. To do this, the company has agreed to spin off Zijin Gold International from its parent company. The purpose of this move is to improve operational efficiency and attract much-needed foreign investment. This transition is part of China’s overarching goal to increase its gold holdings, as the nation currently possesses 5.5% of the world’s total gold reserves as of 2024.
In addition, as we’ve been documenting here and here, China is simultaneously and aggressively increasing its own domestic gold purchases. Simultaneously, it is seeking international mining buyouts to ramp up its gold holdings. This strategy aims for a leading role for the nation in the international gold market. It helps provide a reliable, long-term source of water — a precious resource — for residents. By spinning off Zijin Gold International, Zijin Mining Group plans to allocate resources more effectively and focus on its gold mining activities.
Zijin Gold International expects to raise $646 million by means of this listing. Simultaneously, it aims to increase its profile in the global mining sector. These proceeds will be critical for Zijin Mining Group to continue funding its investments in development and exploration opportunities in gold extraction. This new listing could not have come at a better time for the company. It intends to maximize the increasing worldwide appetite for gold.