CHINESE mining firm Zijin Mining Group is on track to acquire a minority stake in Canada’s Ivanhoe Mines it emerged yesterday as the firm seeks to expand beyond its traditional Chinese heartland.
Shares in the Ivanhoe surged 12.37 per cent in Toronto on the news Zijin will purchase a 9.9 per cent stake for CAD$1.36 per share, valuing the company at CAD$105m (£56m).
The proceeds of the transaction will allow Ivanhoe to further expand its African operations which currently focus on the Democratic Republic of Congo and South Africa.
Ivanhoe is chaired by mining billionaire Robert Friedland and specialises in mining a broad range of metals and commodities, with headquarters in Canada, South Africa and the UK.
Zijin is a large-scale mining group established in 1986 and headquartered in Shanghang County.
It is a leading chinese gold producer and copper miner listed on the Shanghai and Hong Kong stock exchanges where it is valued at $10bn,
Commenting on the deal Friedland said: "We are delighted to welcome Zijin Mining both as an old friend of Ivanhoe Mines and a strategic investor that shares our long-term vision.
“In particular, Ivanhoe and Zijin are in detailed, friendly discussions about the strategic co-development of our Kamoa copper discovery in the Democratic Republic of Congo.”
Speaking on behalf of Zijin Mining chairman Chen Jinghe, a close friend of Friedland for the past 10 years, said: “Zijin will establish a close and strategic partnership with Ivanhoe through which we plan to cooperate in the development of Ivanhoe’s mines.”