Major Gold Deal: Zijin Mining Expands with Raygorodok Acquisition

Major Gold Deal: Zijin Mining Expands with Raygorodok Acquisition

Zijin Mining will acquire the Raygorodok gold mine in northern Kazakhstan for $1.2 billion. This marks a major investment in Central Asia’s gold sector. The purchase involves subsidiaries Zijin Gold International and Jinha Mining. These entities will gain full control of RG Gold and RG Processing from current owner Cantech. This move strengthens Zijin’s global gold portfolio.

Raygorodok sits in Kazakhstan’s Akmola region, 70km from Shchuchinsk. It offers excellent access to key transportation routes. Its location and reserves support Zijin’s broader growth strategy. The mine operates under a contract valid until 2040, with possible renewals. It includes modern infrastructure and strong development potential.

By the end of 2023, Raygorodok held 241 million tonnes of indicated and inferred ore. Average gold grade stood at 1.01g per tonne. Two open pits—South Raygorodok and North Raygorodok—anchor current operations. These are supported by a CIP plant built in 2022 and a heap leach facility from 2016.

Raygorodok Gold Mine Offers 16-Year Production Horizon

Raygorodok’s recent output shows steady growth. It produced 2 tonnes in 2022, 5.9 tonnes in 2023, and 6 tonnes in 2024. Zijin projects average annual output of 5.5 tonnes going forward. The company also sees room to boost capacity. Enhanced pit design and modern processing could raise efficiency and yields. These upgrades will be key to maximizing long-term value. This acquisition supports Zijin’s goal to expand in Central Asia’s mining sector. It also helps secure high-quality, long-life gold assets.

China’s growing interest in Kazakhstan’s mineral wealth continues. This deal helps diversify supply chains and strengthen bilateral resource partnerships. Cantech, the seller, is owned 65% by V Group International and 35% by Resource Capital Funds (RCF). V Group is part of Verny Capital, based in Kazakhstan.

Verny Capital CEO Aidan Akanov called the deal a successful exit. He highlighted the transformation from a small site to a top national producer. He added that Verny’s model involves building assets and exiting under strong market conditions. The group is now exploring new opportunities in Kazakhstan.

SuperMetalPrice Commentary:

Zijin’s $1.2 billion move into Kazakhstan reflects both strategy and timing. Raygorodok is a producing asset with a long mine life. It offers scale, infrastructure, and growth headroom—ideal for a global player like Zijin Mining.

Kazakhstan remains attractive for foreign miners, offering large reserves and regulatory predictability. As gold remains strong, deals like this provide portfolio resilience.

Expect more Chinese investments in Central Asian mining. Geopolitical shifts and demand for gold support this trend. Raygorodok may become a blueprint for cross-border partnerships in resource development.