As China’s relationship with African countries has deepened, the country’s influence is spreading into more areas. In the latest of a series of articles, Dulue Mbachu investigates the extent of Chinese investments in the continent and Beijing’s growing wariness about their security.
Chinese regulators balked at Zijin Mining’s planned US$4 billion acquisition of Canadian company Allied Gold, placing it on hold to scrutinise the potential risks.
As a result, the agreement for the deal, already approved by Canadian and West African regulators, was extended to July 29, according to the Toronto-registered company.
Allied Gold’s most important mining assets are in Africa, with the biggest being the Sadiola mine in Mali, a country which is under increasing attacks from jihadist insurgents.
The company’s other assets, in Ethiopia and Ivory Coast, are relatively safer but nevertheless are located in regions that are broadly prone to conflict and other political risks.
China’s decision to suspend the acquisition of Allied Gold signals a growing wariness in Beijing about the rising risks and security costs of its overseas investments, according to observers.
