(Yicai) May 6 -- Zijin Mining Group said it plans to spin off its overseas gold mining assets into a new unit for listing in Hong Kong, with the aim of speeding up the Chinese mining giant’s internationalization amid record high prices for the precious metal.

Zijin Mining will spin off and combine several large gold mines in South America, Central Asia, Africa, and Oceania into a new subsidiary, Zijin Gold International, which will then be listed on the main board of the Hong Kong Stock Exchange, the Fujian-based firm said on April 30.

The move will help Zijin Mining broaden its access to international investors, reduce overseas operational risks, and enhance its competitiveness and flexibility in overseas capital markets for financing and mergers and acquisitions, the firm said. The timing of the spin-off coincides with a rising cycle in gold prices, which is favorable for revaluing the company's gold assets, it added.

Amid the disruption to international trade caused by the Trump administration's tariff policy, the price of gold has risen sharply this year, with the yellow metal seen as a safe-haven asset. On April 22, it reached a record high of USD3,500 per ounce. Although it has since fallen back to trade around USD3,385 today, gold is still up almost 28 percent since the end of last year.

As China's largest miner, Zijin Mining ranks first in the country for annual production of various metal minerals, including gold, copper, and zinc. Last year, the company's gold output jumped 8 percent from the previous year to 2.3 million ounces. Gold sales accounted for half of its annual revenue and contributed 30 percent of its gross profit.

Benefiting from the rise in gold prices, Zijin Mining's net profit jumped 52 percent last year to CNY32.1 billion (USD4.4 billion), while revenue rose 3 percent to CNY303.6 billion (USD42 billion). In the first quarter of this year, profit and revenue surged 62 percent and 6 percent, respectively, reaching CNY10.2 billion and CNY78.9 billion.

Zijin Mining’s shares [SHA: 601899] closed 1.7 percent at CNY17.76 (USD2.46) in Shanghai today, while its Hong Kong-listed stock [HKG: 2899] added 1.3 percent to end at HKD17.68 (USD2.28).

Editor: Tom Litting