How China’s resources deals have literally turned into a gold mine

Fri July 17 2026

Chinese gold producers have embarked on a wave of overseas acquisitions in recent years, snapping up mines in countries ranging from Kenya to Colombia. Now, they are reaping the rewards as sky-high gold prices lift their earnings.

Prices for the precious metal soared to record highs last year and remain highly elevated despite a recent sell-off, as central banks and investors seek a safe haven amid a turbulent global outlook. Analysts have said prices could reach US$4,500 per ounce by the end of the year.

The market swings have been a windfall for China’s mining firms, with several companies reporting triple-digit increases in profits. Zijin Gold International, a unit of the country’s largest mining firm by market capitalisation, estimated its net profits attributable to shareholders surged 169 per cent to around US$1.4 billion in the first half of the year, according to a filing with the Hong Kong stock exchange last week.

Established in 2007, the company owns gold mines across several continents, with deals in countries such as Tajikistan, Kyrgyzstan, Australia, Guyana, Colombia, Suriname, Ghana and Papua New Guinea. In the past year, it has acquired another two mines – one each in Ghana and Kazakhstan – both of which have already turned profitable, the filing said.

The company has ramped up production in recent months amid the global rise in gold prices, with its gold output hitting 27 tonnes in the first half of 2026, up from 19 tonnes a year earlier, according to the filing.

Other Chinese firms have reported bumper earnings. On Wednesday, Shenzhen-listed Zhaojin International Gold estimated its net profits attributable to shareholders had skyrocketed by well over 300 per cent in the first half of 2026.

The company attributed the huge leap in profits to higher sales from its Fiji subsidiary, after taking control of Fiji’s century-old Vatukoula gold mine in early 2025. Lingbao Gold, which completed the acquisition of the Simberi gold mine in Papua New Guinea earlier this year, also said the new asset had made a positive contribution to its performance in the first six months.

The company estimated its net profits for the first half of the year reached up to 1.05 billion yuan (US$134 million), up 57 per cent compared with the same period last year, according to a Hong Kong stock exchange filing on Monday.

Analysts said they expected gold prices to remain high for some time to come, as central banks continue to buy up the metal in an effort to diversify away from US Treasuries and other assets backed by the US dollar.

Value Partners, a Hong Kong-based asset management firm, said it would remain “positive on gold over the long term as most central banks, including China, will continue to buy gold” even after the oil shock sparked by the US-Israel war on Iran stabilises, according to a research note published on Tuesday.

Source: https://www.scmp.com