Hong Kong-listed Zijin Gold International has announced its acquisition of a 9.2% stake in Canada’s Allied Gold Corporation. Valued at nearly $300 million, this investment enables the Chinese mining company to secure partial ownership of the highly prospective Kurmuk gold development project located in the Benishangul-Gumuz Region of western Ethiopia.
This financial backing will be used to complete Allied Gold’s operations and bring them into full production, including the Kurmuk project. Situated roughly 20 kilometers from the Sudanese border, the Kurmuk gold site is expected to produce between 240,000 and 270,000 ounces of gold annually starting in 2027, with an estimated market value of around $1 billion.
This $300 million minority stake acquisition comes after previous, larger acquisition attempts fell through. Earlier in the year, Zijin Gold had agreed to purchase all of Allied Gold for $4 billion (CAD 5.5 billion), but the full buyout failed to materialize after losing approval from Chinese regulatory authorities. Rather than canceling the deal entirely, both companies finalized the agreement by shifting to a smaller 9.2% ownership stake.
Previously, a $500 million agreement between Allied Gold and the Emirati firm Ambrosia also dissolved after failing to meet closing conditions.
The transaction highlights the growing connection between Chinese technical expertise and Gulf capital within Ethiopia’s mining sector. Zijin Gold is part of Zijin Mining, whose ownership structure includes Chinese state-owned entities alongside international financial institutions. Among them is the Abu Dhabi Investment Authority (ADIA), the UAE’s sovereign wealth fund, which holds a substantial $680 million investment in Zijin Mining.
The Kurmuk project’s location has drawn the attention of geopolitical analysts due to its close proximity to Sudan’s Blue Nile State. The area sits near a zone where fighting actively persists between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF).
Regional security analysts note that the surrounding borderlands remain vulnerable to illicit gold trading and population displacements. Although Allied Gold states that it maintains reliable operational and security protocols at the site, concerns regarding potential impacts tied to the Sudanese conflict continue to be widely raised.
For the Ethiopian government, expanding mining development at Kurmuk aligns with broader plans to boost foreign exchange earnings and modernize the national mining industry. Driven by rising global bullion prices, Ethiopia’s gold export revenues have reached $3.5 billion. By attracting foreign capital investment, the Ministry of Mines and Ethiopian Investment Holdings (EIH) are working to transition traditional artisanal gold extraction into modern industrial development.
