China’s CMOC strengthens precious metals portfolio with Brazilian gold acquisition

CMOC Group, one of China’s largest mining companies, is accelerating its expansion into the precious metals sector through a $1 billion deal to acquire the Brazilian operations of Equinox Gold Corp.

The transaction encompasses two Equinox entities — Leagold LatAm Holdings BV and Luna Gold Corp. — which control multiple gold deposits and operating mines in Brazil, Bloomberg reports.

Under the terms of the agreement, Equinox will receive $900 million in cash, along with a contingent cash payment of up to $115 million one year after the deal closes, CMOC said in a statement.

While CMOC’s primary focus has historically been on copper and cobalt, the acquisition will increase its annual gold output to eight tons, the company noted.

Earlier this year, CMOC also acquired Canadian miner Lumina Gold Corp. for C$581 million ($422 million), securing Ecuador’s largest primary gold deposit.

By Vafa Guliyeva