Canadian mining company Allied Gold has announced the sale of a minority stake in its assets to China’s Zijin Gold International in a deal valued at approximately $300 million. The transaction includes the acquisition of Al-Kormuk Gold Mine concession in western Ethiopia, highlighting the expansion of joint Chinese-United Arab Emirates (UAE) investment influence near conflict zones in Sudan, amid accusations linking such activities to the financing of the Rapid Support Forces (RSF) militia.
Under the agreement, the Chinese company will acquire approximately 9.2% of Allied Gold’s shares, giving it partial ownership of major mining assets in Mali, Côte d’Ivoire, and Ethiopia. The UAE connection to the deal is significant through the Abu Dhabi Investment Authority (ADIA), the UAE sovereign wealth fund, which has been a major shareholder in Zijin’s parent company since 2022 and invested approximately $680 million during the first quarter of this year.
The Ethiopian Al-Kormuk Mine carries considerable geopolitical sensitivity due to its location in the Benishangul-Gumuz region, in close proximity to Sudan’s Al-Kormuk area in Blue Nile State. Reports indicate that the Ethiopian region hosts military bases used as logistical hubs for training and arming RSF fighters, while the UAE is regarded as the main buyer of Ethiopian gold.
The deal has also brought renewed attention to the complexities of Sudan’s war economy, amid accusations that the UAE has used illicit gold mining and trading—including gold smuggled through Al-Junaid, a company affiliated with the RSF militia—to help finance the militia.
The transaction also raises questions about China’s role. Despite Beijing’s declared neutrality, UN reports have pointed to advanced Chinese-made weapons reaching the RSF through intermediaries.
While Ethiopia’s Ministry of Mines welcomed the new investments, which are expected to generate approximately $1 billion by 2027, the Canadian and Chinese mining companies have refrained from providing public clarification or guarantees regarding mechanisms to prevent gold from the mine from being used to support armed groups in neighboring Sudan.
