Chen Jinghe was a fresh geology graduate when a government official tasked him with a life-changing mission: to find gold at Zijin Mountain in 1982. This endeavor led to the discovery of China’s largest gold mine, establishing the foundation for Zijin Mining Group Co., now a $67 billion state-owned giant.
Over three decades of exploration and acquisition, Zijin has diversified its operations, extracting gold, copper, and lithium across multiple continents. While officially a state-run entity, Zijin operates with the agility of a private firm, showcasing a flexible, risk-tolerant investment strategy that positions it to rival established global resource companies like BHP Group.
“In the first ten years, we developed gold and copper at Zijinshan. In the second, we expanded across China. And in the past ten years, we’ve turned to global expansion,” Chen stated from the group’s headquarters in Xiamen, a city located about three hours from the original mine site. While Western firms like Anglo American have limited their investments post-commodities boom, Zijin has pressed forward, leading to significant growth in China’s mined copper output.
Zijin’s copper production has more than tripled over the past five years, bolstered by new operations in Africa and the Balkans, making it the sixth-largest copper miner on an equity basis last year. This growth reflects China’s ascent as a top commodity consumer and its ambitions to expand its global mining footprint.
Despite challenges, including geopolitical tensions and resistance to Chinese acquisitions in Western markets, Chen remains optimistic. “Future expansion will be more difficult,” he acknowledged, citing regulatory hurdles in Canada that have impacted Zijin’s investment strategies.
Zijin has made significant investments, exceeding $4 billion in Canadian mining companies since 2015, although some deals have faced obstacles. For instance, its attempt to acquire a stake in Solaris Resources was halted after a government review. Nevertheless, Chen is determined to pursue opportunities, even in regions where larger Western firms hesitate to venture.
The company’s commitment to innovation and technology has been key to its success. Chen emphasized that Zijin has its own research and construction capabilities, allowing for rapid project completion. Since its Hong Kong listing in 2003, Zijin has invested over $7 billion in acquisitions, predominantly in overseas ventures.
One notable success was Zijin’s investment in the Kamoa project in the Democratic Republic of Congo, which has become one of the world’s largest copper mines. Chen expressed regret that Zijin couldn’t acquire the entire operation initially but noted that their stake is significant.
As demand for copper surges with the energy transition, Zijin is well-positioned for future growth. Its ability to navigate geopolitical challenges and maintain aggressive expansion strategies sets it apart in the competitive mining landscape. With expectations to increase copper output significantly in the coming years, Zijin is poised to remain a formidable player in the global market.
