by TIAN Heqi

Chinese gold miners are stepping up overseas acquisitions despite record bullion prices, as limited reserves and policy support drive a new push to secure resources — and to integrate more deeply into local markets.

At an industry forum in Tianjin, DUAN Lei, general manager of Zhaojin Mining Industry, said the trend could soon reshape the global rankings. He predicted that within three to five years at least three Chinese producers could be among the world's top ten. Zijin Mining Group is currently the only Chinese firm on that list.

Spot gold climbed above US$4,300 per ounce in mid-October, up more than 50% this year as investors sought safety in bullion. The rally has inflated asset values but also pushed Chinese miners to accelerate their overseas expansion, a trend encouraged by recent government policy. In June, authorities issued a 2025–2027 plan calling on miners to invest more abroad and deepen links with global supply chains.

Chinese miners have unveiled a string of acquisitions this year. Zijin Mining completed its US$1 billion acquisition of the Akyem gold mine in Ghana from Newmont Corp in April and in October, its subsidiary Zijin Gold International took full control of Kazakhstan's Raygorodok project, lifting its producing mines to nine. Shengtun Mining and Xinye Silver & Tin Co also moved abroad with deals in Congo and Australia.

S&P Global said Chinese mining companies have spent more than US$2 billion annually on overseas metals acquisitions over the past five years. With lithium prices slumping, many are pivoting to gold, completing six major deals worth about US$1.7 billion in 2024 alone.

LI Weiming, a researcher at the Development Research Center of the State Council, said the rise in outbound deals reflected stronger corporate capability and favorable timing, as Western miners face tighter financing and aging mines.

Analysts said resource nationalism and complex tax regimes remain key obstacles. ZHANG Ru at Deloitte China said countries such as Guinea, Chile and Peru are tightening local-content, tax and ESG rules that raise compliance risks but can reward firms with stronger standards.

Executives said success abroad depends on integration and talent, noting that Chinese miners often underestimated community and cultural risks and now need more diverse, internationally trained teams.

At Zijin, executives view local acceptance as crucial. ZHANG Weibao, the company's strategy director, said resource nationalism should be regarded as a normal reality and that miners must learn to operate within it.

Analysts said the latest wave of deals signals a shift in China's resource strategy—from owning assets to building a lasting presence overseas. China is the world’s largest gold consumer, using about 20% of global output but producing only 10% and holding around 5% of known reserves.

HUANG Fu, chief researcher at Zijin, said the mismatch between reserves and output makes overseas expansion inevitable and the focus now is on long-term competitiveness.