CMOC Acquires Equinox Gold Operations in Brazil

Written by Amir Richani for Industrial Info Resources (Sugar Land Texas)

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Summary

CMOC buys three operational assets in Brazil from Equinox Gold, which combined have a production guidance of 250,000-270,000 ounces of gold for this year.

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CMOC Agrees to Brazil Purchase

CMOC Group (Luoyang, China) has agreed to buy Equinox Gold's (Vancouver, British Columbia) Brazilian gold operations for US$1.01 billion, with an upfront payment of US$900 million and a production-linked cash payment of US$115 million one year after the closing of the transaction.

The US$115 million cash consideration is contingent on annual gold production of at least 280,000 ounces in the first year of operations. Otherwise, the company will receive revenue of 12.5% for production between 200,000 and 280,000 ounces.

The sale includes the three operational assets of: the Aurizona mine in Maranhao, the Riacho dos Machados (RDM) gold mine in Minas Gerais, and the Bahia Complex in Bahia, which is composed of the Santa Luz open pit mine and the Fazenda open pit/underground mine. These assets contain resources of 5.01 million ounces of contained gold and reserves of 3.87 million ounces of gold.

Combined, these operations produced 247,300 ounces in 2024. Meanwhile, for this year, Equinox's production guidance for its Brazilian operations includes an expected 250,000-270,000 ounces of gold, with total cash costs of US$1,725-US$1,825 per ounce. Growth capital across Brazilian operations ranged from US$35 to US$40 million, and exploration costs ranged from US$21 to US$24 million in 2025.

"The Transaction is an important step that showcases our conviction in gold and delivers on our strategy of pillaring the portfolio on copper and gold. Considering the rich resources and stable geopolitical environment in Brazil, the Transaction offers strategic addition to our existing assets, creating stronger synergy and growing CMOC presence in South America," said Liu Jianfeng, Chairman of CMOC.

Room for Growth

Currently, the Aurizona mine has the capacity to produce 100,000 ounces of gold per year, and a project to expand capacity to 140,000 ounces per year is being considered, including development of the underground deposit and near-open-pit deposits. According to the company, the underground portal and decline would begin in late 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

At the same time, at the Bahia complex, the company highlighted the potential to explore the 70-kilometre greenstone belt that hosts the two mines for additional resources.

Overall, IIR is tracking 15 projects related to Equinox's three mines in Brazil, totaling US$189.3 million. Of those, five projects are highly likely to proceed.

Brazil's Gold Production

According to the Brazilian National Mining Agency, the South American nation produced 82 tons of gold in 2024, about 3.5% less than in 2023. In 2024, Brazil accounted for roughly 2.5% of the global production.

Key Takeaways

• CMOC buys three gold mines: Aurizona, RDM and the Bahia complex from Equinox.
• The assets had production guidance of 250,000 -270,000 ounces for this year.
• In 2024, Brazil produced 82.3 tons of gold.

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  About Industrial Info Resources
  Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).