China’s CMOC makes US$1 billion Brazil gold push as bullion jumps on rising global risks

One of China’s largest mining companies has taken control of three gold mines in Brazil in a deal worth about US$1 billion, as gold prices hit historic highs amid rising economic and geopolitical uncertainty in the United States and a global flight to safe assets.CMOC said on Tuesday it assumed operational control on January 23 after Brazilian regulators approved the transfer of the Aurizona mine in Maranhao, the Riacho dos Machados mine in Minas Gerais and the Complexo Bahia, which includes the Fazenda and Santa Luz mines.“With the incorporation of gold operations into its Brazilian portfolio, CMOC advances its sustainable growth strategy, broadens the diversification of its businesses and strengthens its global presence,” the company said in a statement.“The transaction enhances synergies with existing assets in the country and ... reinforces the company’s positioning in the global gold market, in alignment with corporate guidelines and its long-term sustainable growth strategy.”The acquisition was announced in late December, when CMOC confirmed it had reached an agreement with Equinox Gold Corp of Canada, marking its entry into Brazil’s gold sector and strengthening its presence in the country where it already runs niobium and fertiliser operations.CMOC is one of the world’s largest diversified mining groups. Photo: HandoutEquinox stated that it would receive US$900 million in cash at closing and could receive up to US$115 million in additional payments around one year later depending on performance and other adjustments.