(Yicai) June 30 -- China's largest gold miner Zijin Mining Group intends to acquire the Raygorodok project, one of Kazakhstan's largest gold deposits, for USD1.2 billion to expand its global reserves of the safe-haven asset before listing its spinoff in Hong Kong.

Zijin’s Singapore-based subsidiary Jinha Mining has signed an agreement to acquire the entire equity of the Raygorodok Gold Mine project, including full ownership of mine operator RG Gold and processing company RG Processing, the Fujian-headquartered firm announced today.

On April 30, Zijin announced plans to spin off its overseas gold assets into Zijin Gold International and pursue a Hong Kong listing to strengthen its international financing and acquisition capabilities.

Amid persistently high global gold prices, Zijin has been accelerating its international acquisitions to bolster reserves. In April, it purchased the Akyem Gold Mine -- one of Ghana’s largest -- for USD1 billion. It also bought the La Arena copper-gold mine in Peru last year for USD245 million.

Located in Kazakhstan’s northern Akmola region, the Raygorodok mine includes two deposits with inferred ore reserves totaling 241 million tons as of the end of 2023, containing an estimated 242.1 tons of gold, according to the announcement.

The previous owner noted that the site includes two processing plants, commissioned in 2016 and 2022, which produce an average annual gold output of 5.5 tons, with a remaining mine life of 16 years. In 2024, the mine generated USD473 million in revenue and USD202 million in net profit.

Zijin stated that the Raygorodok project features substantial reserves, a long life cycle, and mature processing capacity, making it capable of delivering immediate profit contributions. Next, the company plans to expand the mine and optimize extraction and processing technologies to increase output and economic returns.

Driven by rising gold prices, Zijin's net profit jumped 52 percent year-on-year to CNY32.1 billion (USD4.5 billion) last year, while revenue rose 3 percent to CNY303.6 billion (USD42.4 billion). The company’s gold output climbed 8 percent to 73 tons, according to its annual report. Zijin aims to raise its gold output to 85 tons this year and reach 100 to 110 tons by 2028, the report added.

Editor: Emmi Laine