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CMOC Group, one of China’s biggest miners, extended its push into precious metals with a US$1 billion deal to buy the Brazilian operations of Equinox Gold.
It will take full ownership of two Equinox entities – Leagold LatAm Holdings and Luna Gold – that control several mines or deposits in the South American nation. Equinox will receive US$900 million in cash, plus a contingent payment of as much as US$115 million one year after the deal closes, CMOC said in an exchange filing on Monday.
The Chinese firm is one of the world’s fastest-growing miners, passing Glencore as the biggest cobalt producer in 2023 and also having major copper operations. It’s been posting strong profits off the back of high prices for the industrial metal and said earlier this year it would focus on mergers and acquisitions in copper, gold and minor metals.
The deal “showcases our conviction in gold” and the miner will seek to drive long-term growth in the metal, Chairman Liu Jianfeng said in a separate statement. The transaction offers a strategic addition to CMOC’s assets and builds on its presence in South America, he said.
CMOC shares jumped as much as 3.4 per cent in Hong Kong on Monday and have more than doubled since the end of June.
Gold has surged by almost two-thirds this year and has hit a series of record highs on increased demand for haven assets, while copper has rallied more than 30 per cent on strong consumption and mine outages, also reaching an all-time peak. CMOC bought the Canadian miner Lumina Gold earlier this year for C$581 million (US$422 million) to tap Ecuador’s largest primary deposit of the precious metal.
