Zijin Mining, the Chinese gold and copper producer, and Canada’s Barrick are moving ahead with a potential deal for the Tongon gold mine in northern Ivory Coast, with Zijin front-running a sale process that could see bids climb to as much as $500 million, according to people familiar with the talks. Tongon is forecast to produce 148,000 ounces of gold in 2024—worth about $504 million at prevailing prices—and is expected to shift to care and maintenance by 2027 as reserves wind down.
Sale Process and Valuation
Barrick has hired TD Securities and Treadstone Resource Partners to run the auction. One person involved said the asset is fundamentally worth around $300 million, yet Zijin is prepared to stretch higher, potentially up to $500 million. A second source confirmed Zijin’s lead while noting a local Ivorian bidder remains in the running. A final call is anticipated later in July, pending regulatory clearance, though the process could still slip or collapse. Barrick declined to comment; the advisers and Zijin did not respond to requests for comment.
Strategic Rationale and Government Position
Barrick owns 89.7% of Tongon, with the Ivorian state holding 10% and local investors 0.3%. Divesting would fit Barrick’s strategy of concentrating on longer-life, higher-margin operations and boosting its copper exposure. Ivorian authorities are understood to favour a partnership model for any change of control, but sources say Zijin is not inclined toward a joint venture. Government officials said they had no fresh information on the proposed sale and declined to outline possible conditions.
Industry Context and Gold Pricing
Zijin has been extending its international footprint across South America, Central Asia and Africa through acquisitions and minority stakes. Its tilt at Tongon follows other recent deals for producing assets in gold-rich jurisdictions. For Barrick, selling a mine nearing the end of its reserve life could free capital for growth elsewhere. Tongon’s 2024 guidance of 148,000 ounces, multiplied by recent gold prices near $3,400 an ounce, underpins the valuation cited by sources.
Company Background and Market Context
Tongon, near Ivory Coast’s northern border, has long been one of Barrick’s West African contributors but faces declining resources, prompting the expected shift to care and maintenance from 2027 absent new drilling success. Barrick—one of the world’s largest gold producers—has been reshaping its portfolio, exiting shorter-life assets while emphasising copper growth to diversify revenue. Zijin, meanwhile, has pursued scale globally, using its balance sheet to buy producing mines and stakes in development projects, and seeks additional reserves to capitalise on elevated bullion prices.
Gold, a key store of value in times of macro uncertainty, has been trading near record levels around $3,400 per ounce in recent sessions, supporting strong cash flows for producers. Elevated pricing has encouraged consolidation and asset sales as companies optimise portfolios ahead of any future price normalisation.
