Chinese company on US forced labour watchlist to buy Canadian gold mining firm

A Chinese mining group which is on America’s forced labour watchlist has announced its acquisition of a Canadian mining company in the days following Mark Carney's visit to China.

Zijin Gold International, one of the world's largest gold miners with operations across nine countries, will run Canada’s Allied Gold’s mines in Africa following an all-cash deal for $4.2bn (£3.07bn) as ‌the Chinese firm ramps up its global expansion against the skyrocketing prices of the yellow metal.

Zijin Gold International Company Limited is a subsidiary of the Zijin Mining Group, which has been placed on the US administration’s Uyghur Forced Labour Prevention Act Entity List. Under the law, goods linked to companies suspected of using forced labour involving China’s ethnic Uyghur minority in the Xinjiang region are barred from entering the US.

The deal comes less than two weeks after the Canadian prime minister visited China, where he argued that a strategic partnership between China and Canada could set both nations up for the "new world order".

During Mr Carney's trip to mend tattered ties, both nations reached a preliminary agreement to cut tariffs on electric vehicles and canola and vowed to ease trade tensions.

Canada has long been one of Washington’s closest allies, geographically and otherwise. But Beijing is hoping that president Donald Trump’s economic and military aggression against other countries will erode that longstanding relationship.

Mr Trump has hit Canada with tariffs on its exports to the US and suggested the vast, resource-rich country could become America’s 51st state. More than 75 per cent of Canada’s exports go to the US, and its fraught ties with Washington have pushed Mr Carney to set a goal of reducing that reliance by doubling the country’s exports to other countries over the next decade.

Zijin Gold’s acquisition of Allied is expected to further strain ties with Washington.

The Chinese government under president Xi Jinping has been accused of prosecuting Uyghurs and Hui Muslims over the past decade through alleged widespread abuses and arbitrary detentions. Beijing has routinely denied allegations of “crimes against humanity”, calling them the “lie of the century”.

The UN says China has detained more than a million minority Muslims, mostly ethnic Uyghurs, since a dramatic escalation of counter-terrorism policies in the spring of 2017. In October 2024, Canada, the US and the UK were among 15 countries that issued a joint statement at the UN against the alleged human rights abuses in Xinjiang and Tibet.

Allied CEO Peter Marrone said the deal offers significant value for shareholders and showcases the depth of the ⁠company's portfolio of ⁠gold assets ​across Africa. Zijin enjoyed a strong debut in Hong Kong last year amid ‍a sustained rally in bullion's prices and a September fundraising boom.

Zijin Gold shares rose as much as 19 per cent in Hong Kong trading to a record high after the deal, which is among the largest acquisitions of a Canadian-registered mining company by a Chinese investor.

A surge in gold prices has boosted margins and cash flows for miners, ‌fuelling consolidation in the industry as large producers seek ​to secure long-life assets and boost output through acquisitions rather than developing new mines.

Zijin will pay ‍C$44 per share, implying a premium of about 5.4 per cent to Allied stock's ‌last ‌close. US-listed shares of Allied were up nearly 4 per cent in premarket trading.

Under the agreement, Allied will have to pay C$220m (£106m ) to Zijin, if ​the deal is terminated under certain ‍conditions. The companies expect the transaction to close by late April 2026.