Ethiopia has granted regulatory approval for Zijin Gold International’s USD 4 billion acquisition of Allied Gold Corporation, allowing the transaction to move closer to completion.
The approval follows regulatory clearances in Canada, the United States, COMESA, and other African jurisdictions. The parties are expected to complete the transaction before the extended closing deadline of July 29, 2026.
The acquisition, announced in January, involves Hong Kong listed Zijin Gold International purchasing Allied Gold Corporation in an all cash transaction valued at approximately USD 4 billion. Allied Gold is listed on the Toronto and New York stock exchanges.
The transaction includes Allied Gold’s mining portfolio, including the Kurmuk Gold Mine in western Ethiopia. Allied Gold has stated that its operations and development projects will continue under their existing legal, regulatory, and contractual arrangements, with the main change being the ownership of the parent company.
The Kurmuk Gold Mine is located in Kurmuk Woreda, Assosa Zone, in the Benishangul-Gumuz Regional State, approximately 750 kilometres west of Addis Ababa. Commercial production is expected to begin in the coming weeks.
The project has received an investment of about USD 620 million and is designed to process 6.4 million tonnes of ore annually. Gold production is projected to reach approximately 290,000 ounces per year during the initial years and average more than 240,000 ounces annually over an estimated 10 year mine life.
The mine currently has proven and probable reserves of about 2.7 million ounces. Projected all in sustaining costs are below USD 950 per ounce.
The transaction received support from Allied Gold shareholders in March, with 99.54 percent voting in favour. It later received court approval in Ontario and clearance under Canada’s Investment Canada Act.
Upon completion, Zijin Gold International’s portfolio is expected to include 12 gold mines in 12 countries, including Ethiopia, Mali, and Côte d’Ivoire.
Source: Capital Ethiopia Newspaper
