Zijin Mining Completes Sale of Bullabulling Gold Mine to Minerals 260

Zijin Mining disclosed on April 7 that its Australian subsidiary, Norton Gold Fields, has finalized the sale of Bullabulling Gold Pty Ltd to Minerals 260 for a total consideration of A$166.5 million (approximately $100 million). The deal includes A$156.5 million in cash and 83.33 million shares of Minerals 260 valued at A$10 million, representing a 3.87% stake in the company’s expanded share capital. The transaction marks a rare divestment for Zijin Mining, which has primarily focused on acquisitions in recent years.

Bullabulling Gold Pty Ltd owns the Bullabulling Gold Mine (BAB Project), located in Western Australia, which holds an estimated resource of 72 metric tons of gold with an average grade of 1.2 g/t under JORC standards. Zijin Mining originally acquired the asset in 2014 for approximately $25 million but has struggled to develop it due to challenges with heap leaching processes for its low-grade deposits. Despite these setbacks, the sale price is nearly four times the initial investment cost, yielding a profit of about $75 million after deducting acquisition costs, underscoring the strategic value of the transaction for Zijin Mining.

The divestment aligns with Zijin Mining’s strategy to focus on larger, high-value projects while shedding smaller or underperforming assets. In recent years, Zijin has expanded aggressively through acquisitions, including a gold mine in Ghana and control of Zangge Mining in China, spending billions to bolster its portfolio of copper, gold, and lithium resources globally.

However, delays in developing certain projects have raised concerns among analysts about risks associated with undeveloped assets. As of late 2024, Zijin Mining reported that seven out of its fifteen incremental projects were either not yet operational or in early production stages. This includes major projects such as the Baihe Copper Project in Peru and lithium mines in Tibet and Hunan, which are expected to begin production later this year.

The BAB Project sale also reflects Zijin’s efforts to optimize Norton Gold Fields’ asset structure and improve operational efficiency. Minerals 260 plans to initiate extensive exploration and drilling campaigns at Bullabulling Gold Mine following the acquisition, aiming to unlock its potential amid favorable market conditions.