China’s CMOC to Spend $1 Billion on Brazilian Gold Mines

CMOC Group Ltd. said that it will buy four Brazilian gold mines from Equinox Gold Corp. for up to $1.015 billion, as the Chinese miner diversifies beyond base metals and into precious metals which have become a hot sector this year following a stellar rally in the price of gold.

The deal will give CMOC full ownership of the Aurizona mine in Maranhão, the RDM mine in Minas Gerais and the Bahia complex which runs the Fazenda and Santa Luz mines in Bahia, boosting its annual gold output to eight tons, CMOC said in an exchange filing dated Monday.

The transaction will include a $900 million upfront cash payment and a contingent payment of up to $115 million based on sales volume during the first year following transaction closure expected in the first quarter of 2026, CMOC said.

The four mines contain gold resources of 5.013 million ounces and proven gold reserves of 3.873 million ounces, CMOC said. In 2024, the mines produced roughly 247,300 ounces of gold, with the figure for 2025 expected to be between 250,000 ounces and 270,000 ounces.

Some of the mines have potential for output increase and life extension, CMOC said. The Aurizona mine is expected to nearly double its lifespan to 11 years and double its peak annual output to over 160,000 ounces by transitioning from open-pit mining to underground operations. Similarly, the service life of the Fazenda mine is projected to extend to 2033.