Key facts
- Zijin Gold International acquired a 9.2% stake in Allied Gold for nearly $300 million.
- The stake includes the Kurmuk gold concession in Ethiopia, near the Sudanese border.
- The Abu Dhabi Investment Authority, UAE's sovereign wealth fund, is a major shareholder of Zijin Mining, Zijin Gold's parent company.
- Allied Gold anticipates producing 240,000-270,000 gold ounces from the Kurmuk site in 2027.
- The Kurmuk site is near an Ethiopian army base used by Sudan's RSF, which is supported by the UAE.
- The UAE is identified as a major hub for Sudanese conflict gold.
China's Zijin Gold International has acquired a significant minority stake in Canadian mining company Allied Gold, a deal valued at nearly $300 million. This investment includes partial ownership of the Kurmuk gold concession in Ethiopia's Benishangul-Gumuz region, an area situated close to the Sudanese border and a logistics hub used by Sudan's Rapid Support Forces (RSF), which is supported by the UAE. The UAE is also identified as a primary buyer of Ethiopian gold.
The strategic investment by Zijin Gold, which has the UAE's sovereign wealth fund, ADIA, as a major shareholder in its parent company, marks a new phase after previous acquisition attempts by both Emirati and Chinese entities failed. Allied Gold anticipates commencing operations at the Kurmuk site in August and expects to produce between 240,000 and 270,000 gold ounces in 2027, potentially valued at around $1 billion.
The proximity of the Kurmuk mine to the conflict zone in Sudan and entities affiliated with the RSF has raised concerns about the potential for the mine's resources to indirectly support the ongoing conflict. While both China and the UAE officially maintain neutrality, they have faced accusations of supplying weapons to the RSF. Human rights researchers and diplomatic sources have long identified the UAE as a key destination for conflict gold smuggled from Sudan.