Jing Ji Guan Cha Bao·2025-10-27 08:07Core Viewpoint - In the next 3-5 years, at least three leading Chinese gold mining companies are expected to enter the world's top ten, marking a shift towards a "Chinese era" in global gold mining [1][2]. Industry Overview - Currently, only Zijin Mining is among the top ten global gold companies [2]. - The driving force behind the globalization of Chinese gold mining has shifted from traditional economic and industrial drivers to strategic and national drivers [2]. - International gold prices have surged over 50% this year, with spot gold exceeding $4,300 per ounce, rising more than $1,000 in just two months [2]. M&A Activities - Chinese mining companies are accelerating overseas gold acquisitions, supported by government policies encouraging high-quality international cooperation [3]. - Zijin Mining completed the acquisition of the Akyem gold mine project in Ghana for $1 billion and the Raygorodok gold mine in Kazakhstan, increasing its operational gold mines to nine [5][6]. - Other companies, such as Shengton Mining, are also pursuing overseas acquisitions, with Shengton planning to acquire 100% of Canadian Loncor for $190 million [6]. Investment Trends - Over the past five years, Chinese mining companies have spent over $2 billion annually on overseas metal acquisitions, with a shift from lithium to gold investments due to market conditions [7]. - In 2024, Chinese gold overseas acquisitions are projected to reach six deals totaling approximately $1.7 billion [7]. Challenges and Strategies - Despite the growth in overseas acquisitions, challenges such as resource nationalism and complex legal and tax environments remain significant hurdles [11][12]. - Companies are advised to enhance their understanding of local laws and tax regulations to mitigate risks associated with acquisitions [12][13]. - The importance of talent, including local and international expertise, is emphasized as a critical factor for successful integration and operation in foreign markets [17].