In a deal that underscores shifting global resource dynamics, China’s Zijin Gold International agreed on January 26 to acquire Toronto‑listed Allied Gold Corp. in an all‑cash transaction valued at C$5.5 billion (about US$4 billion). The purchase—announced days after Prime Minister Mark Carney’s January 16 visit to Beijing—sharpens debate over Beijing’s growing footprint in Canada’s mining sector as gold prices surge to record levels.
Deal specifics and strategic fit Zijin, a major subsidiary of state‑backed Zijin Mining Group, will pay C$44 per share, a 5.4% premium to Allied Gold’s last closing price. Allied, while headquartered in Canada, operates primarily in West and East Africa, with producing assets including the Agbaou and Bonikro mines in Côte d’Ivoire, the Sadiola mine in Mali, and the Kurmuk development project in Ethiopia. Allied’s 2025 production totaled roughly 141,859 ounces, and the acquisition advances Zijin’s aim to expand global output amid unprecedented gold valuations.
The friendly takeover requires Allied shareholder approval, Canadian court sanction and a national security review under the Investment Canada Act, plus regulatory clearances in China and the African jurisdictions where Allied operates. If completed, the transaction would rank among the largest Chinese takeovers of a Canadian‑registered miner in recent years, giving Zijin control of sizeable African reserves and strengthening its position among top global producers.
Market and domestic implications Canada remains a major gold producer—ranking fourth globally—with national output in recent years around 180–200 tonnes. Large domestic producers such as Equinox Gold reported substantial 2025 output, underscoring Canada’s continued importance to the precious‑metals market. Still, foreign acquisitions of Canadian‑listed companies raise questions about how much domestic value and strategic control remain in Canadian hands versus flowing into internationally controlled supply chains.
Geopolitical context The timing of the bid, close on the heels of Carney’s Beijing trip, has intensified scrutiny. Carney’s meetings with Chinese leaders yielded a measured “strategic partnership” focused on energy, agri‑food and trade, including a temporary cut to Canada’s EV tariff in exchange for greater Chinese market access for Canadian agri‑products. Ottawa framed the outcome as targeted cooperation rather than a full trade pact; critics warn such engagement comes with geopolitical cost.
Canadian security agencies and parliamentary reviews have previously documented extensive Chinese influence operations, from espionage and election interference to economic coercion. Those concerns feed public unease about state‑backed foreign control of strategic resources. With bilateral trade measured at roughly US$118.7 billion in 2024, China is an indispensable partner—yet investments in critical sectors like mining heighten debates over sovereignty and supply‑chain resilience.
Policy fallout and market reaction The deal unfolds amid heightened tensions with the United States. President Donald Trump threatened 100% tariffs on Canadian goods should Ottawa finalize a trade deal with China—a move that rattled markets and raised fears of renewed trade warfare. Analysts warn sweeping tariffs could disrupt North American supply chains, depress Canadian growth and reverberate through global commodity markets.
Those geopolitical shocks have helped propel gold beyond US$5,000 per ounce—the first time the metal has topped that level—driven by safe‑haven flows amid policy uncertainty, inflationary pressures and elevated sovereign debt concerns. On January 26, gold rallied to about US$5,082.50 (up roughly 2.1%), while silver surged nearly 14%. Forecasts from some analysts now point toward US$5,600 by year‑end if tensions persist.
What’s next Regulatory reviews in Canada and target jurisdictions will determine whether the Zijin‑Allied transaction closes. For policymakers the case crystallizes a broader tradeoff: deepening economic ties with China may bring near‑term commercial gains but also renewed strategic dilemmas for Canada as it balances relations with Washington and seeks to protect critical resource sectors.
Sponsor: Reese Energy Consulting — ENB Podcast
Keywords: Critical minerals, finance, geopolitical risk, M&A, mining, investments, rare earths.
