China's largest gold and copper producer has agreed to acquire the Raigorodok gold mine in Kazakhstan for $1.2 billion. The official statement was published on the Hong Kong Stock Exchange. The deal will be one of the largest in the mining sector in the last six years and demonstrates the growing interest of Chinese industrial groups in strategic assets in Central Asia.
The Raigorodok mine is located in a key gold-bearing region and is characterized by a stable level of production. The term of its commercial operation is estimated at 16 years. According to the calculations of the new owner, the average annual gold production at this facility is about 5.5 tons. If the current situation in the commodity markets persists, the asset will contribute to an increase in operating profit and strengthen the holding's resource base in the coming months.
Final completion of the transaction is expected to require regulatory approval in China and Kazakhstan. The negotiation process and subsequent regulatory approvals are in an active phase. The parties have not yet specified the exact time frame for closing the transaction, but they express mutual interest in the prompt completion of the procedure.
For the Chinese company, the investment in Raygorodok fits logically into the strategy of international expansion and diversification of raw materials assets outside of China. Kazakhstan, which has large deposits of non-ferrous and precious metals, remains a priority destination for investors interested in long-term supply stability and high profitability of projects. The region demonstrates political predictability and strong support for industrial initiatives, which makes it particularly attractive for major players in the mining sector.
