Ethiopia has granted regulatory approval for Zijin Gold International’s USD 4 billion acquisition of Allied Gold Corporation (AGC), clearing a major hurdle for the deal and paving the way for the launch of Ethiopia’s largest gold mining project, which is expected to be officially inaugurated in the coming weeks.
Sources indicate that Ethiopian authorities provided clearance this week, following earlier regulatory approvals in Canada, the United States, and several other African jurisdictions.
The acquisition, announced in January, involves Hong Kong-listed Zijin Gold International Company Limited purchasing Allied Gold Corporation, a Canadian mining company listed on both the Toronto and New York Stock Exchanges, in an all-cash transaction valued at approximately USD 4 billion (C$5.5 billion).
This agreement transfers ownership of Allied Gold’s global portfolio, including the Kurmuk Gold Mine in western Ethiopia, to the Chinese mining giant.
Despite the change in ownership, Allied Gold has stated that its operations and development projects will continue under existing legal, regulatory, and contractual frameworks.
“The only change resulting from the transaction is the ultimate ownership of the parent company,” the company affirmed in a statement.
The Kurmuk Gold Mine, located in the Kurmuk Woreda of Assosa Zone in the Benishangul-Gumuz Regional State, approximately 750 kilometers west of Addis Ababa, remains on schedule. Sources expect commercial production to commence within weeks.
Backed by an investment of about USD 620 million, Kurmuk is poised to become Ethiopia’s largest modern industrial gold mine upon operation. The mine is designed to process 6.4 million tonnes of ore annually, with gold production projected to reach approximately 290,000 ounces per year in its initial years, averaging over 240,000 ounces annually across an estimated 10-year mine life. Proven and probable reserves currently stand at about 2.7 million ounces, with ongoing exploration continuing to expand the resource base.
The operation is also anticipated to be among the world’s lowest-cost gold mines, with projected all-in sustaining costs of less than USD 950 per ounce.
Construction has progressed as planned, supported by the completion of essential infrastructure, including electricity transmission lines extended to the site by Ethiopian Electric Power.
This acquisition marks Zijin Gold International’s largest to date, significantly expanding its global footprint. Upon completion, the company’s portfolio will encompass 12 gold mines across 12 countries, including operations in Ethiopia, Mali, and Côte d’Ivoire.
Industry analysts believe that the entry of one of the world’s leading gold producers could bolster investor confidence in Ethiopia’s mining sector, aligning with the government’s efforts to attract more large-scale foreign investment in mineral development.
The deal received overwhelming support from Allied Gold shareholders in March, with 99.54 percent voting in favor. It subsequently secured court approval in Ontario, clearance under Canada’s Investment Canada Act, and approvals from competition authorities in West Africa and the Common Market for Eastern and Southern Africa (COMESA).
With Ethiopian regulatory approval now secured, the parties are expected to finalize the transaction before the extended closing deadline of July 29.
