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\n Beijing\u2019s regulators are casting doubt over a $4 billion Chinese deal to take over a gold mining company in Mali, Africa\u2019s third-largest gold producer, raising concerns about valuation and political risk.
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\n The move comes as China\u2019s National Development and Reform Commission reviews Zijin Gold International\u2019s proposed acquisition of Allied Gold, with officials questioning whether the valuation is too high and whether exposure to Mali\u2019s mining sector introduces unnecessary geopolitical risk.
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\n The regulatory headwinds have cast uncertainty over what would be the Hong Kong-listed firm\u2019s first major deal since its IPO last autumn, according to the Financial Times.
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\n The deal, agreed earlier this year, has already been viewed as a high-stakes bet on Africa\u2019s gold industry at a time when bullion prices have surged to record levels, fuelling a wave of global mining mergers and acquisitions.
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\n China\u2019s National Development and Reform Commission has raised concerns over the valuation premium in the deal and the geopolitical risks tied to Allied\u2019s operations in Mali, people familiar with the matter said.
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\n The proposed acquisition, agreed in January at C$44 per share, was initially seen as a bold bet on Africa\u2019s gold sector at a time when bullion prices surged above $5,500 per ounce. Prices have since eased to around $4,500\/oz, cooling investor sentiment across the industry.
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\n Mali risk factors weigh on investor sentiment
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\n Allied\u2019s key asset, the Sadiola mine, is located in Mali, a jurisdiction increasingly viewed as high-risk by global miners.
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\n The country has faced violent attacks by separatist and jihadist groups, while its military government has detained foreign mining executives and renegotiated contracts with major operators including Barrick Gold and Resolute Mining.
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\n Those developments have heightened concerns among regulators and investors about long-term operational stability in the country\u2019s mining sector.
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\n Meanwhile, Western mining companies continue to reduce exposure to higher-risk African jurisdictions, accelerating asset sales and portfolio restructuring. This retreat has created acquisition opportunities for Chinese miners, which are expanding overseas by targeting producing assets rather than greenfield developments.
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\n Chinese mining groups have been active in this shift. Rival Zijin Mining has built a growing footprint across Mali, C\u00f4te d\u2019Ivoire and Ethiopia, highlighting the increasing role of Chinese capital in Africa\u2019s gold industry.
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\n The original deal deadline of May 29 has passed, with Allied\u2019s shares trading at C$34.73 \u2014 well below the offer price – signalling growing market doubt over completion.
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\n A spokesperson for Allied said both parties are still working toward closing the transaction, citing strong commercial logic. Zijin Gold International declined to comment.
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