Zijin Mining and Allied Gold Corp have terminated their proposed $5.5 billion merger, ending a major consolidation attempt in the gold sector.
The two companies announced the breakup after failing to meet closing conditions by the agreed deadline, specifically citing an inability to secure necessary guarantees from Mali.
The impasse centers on regulatory requirements in Mali, where Allied Gold operates significant assets.
Reports indicate that Chinese authorities imposed conditions that the parties deemed impossible to satisfy, effectively blocking the transaction.
This marks a significant setback for Zijin, which has been aggressively expanding its African footprint to secure gold reserves amid rising global demand.
The deal's collapse underscores the growing complexity of cross-border mining investments involving Chinese state-linked entities.