China-based Zijin Mining has announced its decision to purchase the Raygorodok gold mine in northern Kazakhstan for $1.2bn.

The acquisition involves Zijin Gold International, a subsidiary of Zijin Mining, along with Jinha Mining, another unit within the group, securing full ownership of RG Gold and RG Processing from current owner Cantech.

Situated in the Burabay District of the Akmola region, Raygorodok is approximately 70km from Shchuchinsk and is conveniently near major transportation routes.

The mine operates under Contract No. 486, which was awarded in June 2000 and allows exploration and subsequent gold mining until December 2040. There are provisions for contract renewal pending certain conditions.

Raygorodok is currently active with two open pits, namely South Raygorodok and North Raygorodok, which are separated by a distance of 2km.

As of the end of 2023, the site contained an indicated and inferred ore volume of 241 million tonnes with an average gold grade of 1.01g per tonne.

The site includes a carbon-in-pulp plant implemented in 2022 to process primary ore, augmenting a heap leach system established in 2016 for oxide ore treatment. From 2022 to 2024, the mine produced two tonnes of gold in 2022, followed by 5.9 tonnes in 2023, and six tonnes in 2024.

Projections suggest a remaining operational lifespan of 16 years for the Raygorodok project, with annual production expected to average around 5.5 tonnes of gold. Zijin Mining’s technical team has identified potential for increased production capacity through enhanced pit design and improved processing methodologies.

This acquisition is expected to help Zijin Mining to strengthen its footprint in Central Asia’s resource sector while leveraging technological advancements to maximise output from the Raygorodok site.

Cantech’s shares are owned 65% by V Group International, managed by Kazakhstani firm Verny Capital, and 35% by RCF VII-RG Gold, owned by the US-based Resource Capital Funds.

Verny Capital Group CEO Aidan Akanov said: “We succeeded in implementing a unique project — transforming a small-scale operation into one of the country’s leading gold producers. Now, ten years later, we are planning to hand it over to a major international player with an impressive track record in managing mining assets.

“This reflects Verny Capital’s standard business model: developing an asset and exiting under optimal market conditions. We are currently exploring new, potentially successful investment opportunities. We believe Kazakhstan has strong potential for the development of high-performing projects, and we would like to be part of that growth.”

The closing of the deal is contingent on receipt of regulatory approvals and other conditions.