(Yicai Global) June 24 -- A unit of China’s Jilong Gold Mining, also known as Chifeng Gold, is partnering with Saudi Arabia’s Ajlan & Bros Holding Group to explore for the precious metal in the Middle Eastern country.

The Chinese miner's subsidiary penned an agreement with a unit of Ajlan & Bros to set up a joint venture that will become the first Chinese-Saudi gold explorer located in the capital of Saudi Arabia, the Riyadh-based conglomerate said in a press release yesterday.

Oil-rich Saudi Arabia also has the biggest gold reserves in the Arab world and ranks 16th globally, Ajlan & Bros noted.

“With the establishment of this joint venture, we are well placed to further explore the sustainable development opportunities of Saudi Arabia's mining industry,” said Deputy Chairman Ajlan Mohammed Alajlan.

In recent years, Ajlan & Bros has established a number JVs with Chinese firms to explore opportunities in e-commerce, logistics, fintech, and e-sports in the Middle East and North Africa.

Shares of Jilong Gold Mining [SHA: 600988], which is headquartered in China’s Inner Mongolia Autonomous Region, fell almost 1.4 percent today to close at CNY16.03 (USD2.39) apiece. The stock has climbed more than 17 percent since the start of the year.

Editor: Emmi Laine, Xiao Yi