Zijin Mining Spends Over 10 Billion Yuan to Take Over Chifeng Gold at High Price? Industry Says Market is Rapidly Concentrating Toward Leading Players

Daily Economic News Reporter | Yang Yu Daily Economic News Editor | Huang Sheng

On March 23, the “buyer” of Chifeng Gold (600988.SH, stock price 36.74 yuan, market value 69.821 billion yuan) was revealed. Zijin Mining (601899.SH, stock price 30.58 yuan, market value 813.11 billion yuan) plans to acquire the actual controller Li Jinyang and his concerted action shareholders of Chifeng Gold through its wholly owned subsidiary, and subscribe to the H-shares of Chifeng Gold issued through a private placement, with a total transaction price of about 18.258 billion yuan.

This official announcement coincided with significant fluctuations in international gold prices, prompting market questions about the timing, pricing, and gold expectations of the deal. Particularly, whether Zijin Mining would “buy high” has stirred investor nerves. On March 23, both Chifeng Gold and Zijin Mining saw their stock prices hit by shocks.

Behind the deal is the accelerated concentration of leading companies in the domestic gold market. From Shandong Gold’s acquisition of Yintai Gold to Zijin Mining’s takeover of Chifeng Gold, a source close to the capital market told the Daily Economic News that “big companies buying big companies” has become a trend.

In December 2021, mining tycoon Zhao Meiguang passed away due to illness, leaving control of Chifeng Gold to his wife, Li Jinyang. The new owner of the mining company clarified their position from the start: they do not hold a position in the company and will fully cooperate with the management team led by Chairman Wang Jianhua.

Since 2022, Chifeng Gold’s performance has steadily improved year after year. Notably, by 2025, the company had completed its listing in Hong Kong, and its revenue surpassed 100 billion yuan in that year, with a net profit attributable to shareholders of 3.082 billion yuan, up 74.70% year-on-year.

Why did Li Jinyang choose to liquidate her shares at a time when the company’s development was improving? What is the attitude of the Chifeng Gold board and senior management? On March 23, the reporter sent an interview letter to the company’s email, but received no reply by press time. The reporter also called the company as an investor, and a staff member said, “She has her considerations, and we are not very clear about the specific reasons.”

It is worth noting that Wang Jianhua, the “leader” of Chifeng Gold, is already over seventy years old. This veteran in mining has served as Chairman and Party Secretary of Shandong Gold Group Co., Ltd., and as Director and President of Zijin Mining Group Co., Ltd. He joined Chifeng Gold in September 2018 and has been Chairman since December 2019.

In the 2025 annual report, Wang Jianhua’s speech showed a different tone from before, mentioning the successful completion of director and senior management changes, reflecting on the benefits of rising gold prices, and stating the goal to “grow amid change.”

Shortly after the annual report was disclosed, new changes occurred. Zijin Mining announced it would gain control of Chifeng Gold, and its wholly owned subsidiary Zijin Gold (Group) Co., Ltd. signed a “Strategic Investment Agreement” with Chifeng Gold. The total transaction price was about 18.258 billion yuan.

According to the announcement, the transfer price for Li Jinyang and her concerted action shareholders’ shares was 41.36 yuan per share, with a total transfer price of 10.006 billion yuan.

However, amid conflicts in the Middle East and falling gold prices, market feedback on the deal was not positive.

On March 23, Chifeng Gold’s stock was suspended from trading and hit the daily limit, closing at 36.74 yuan; Zijin Mining also fell 3.38%. Over the past two weeks, international gold prices have declined significantly.

Is this deal worth it for Zijin Mining, having spent over 100 billion yuan but facing gold price shocks?

At the earnings presentation on March 23, Zijin Mining’s Vice Chairman and President Lin Hongfu said that in the short term, gold prices will fluctuate sharply, but in the medium to long term, the logic of maintaining high or further rising gold prices remains unchanged. The acquisition aligns with the company’s strategic priority of resource integration, and Chifeng Gold has good prospecting potential and capacity for production increase in Ghana, Laos, and domestic mines.

This kind of merger and acquisition among gold mining companies is not isolated. In recent years, against the backdrop of increasing scarcity of gold resources and intensifying global mining competition, the domestic gold market has gradually concentrated among leading companies. These top firms, with advantages in capital, technology, and management, are rapidly acquiring resource reserves, expanding production scale, and optimizing global layout through mergers and acquisitions.

In 2023, Shandong Gold spent 12.76 billion yuan to acquire control of Yintai Gold (later renamed Shanjin International), gaining high-grade, low-cost mine assets under Yintai. Subsequently, Shanjin International further acquired overseas assets to accelerate its globalization.

A source close to the capital market told the Daily Economic News that “big companies buying big companies” has become a trend—“if you can’t find new deposits alone, just acquire listed companies directly.”