Zijin Gold International agrees 'friendly' $4bn cash deal for Allied Gold

The international arm of the Chinese mining giant has raised HK$25bn, the second biggest listing of the year.

Following the termination of another deal, the merger creates a dominant Western Australian producer, underscoring how high gold prices are accelerating consolidation across Australia's mining sector.

Soaring gold demand in China has led to a supply shortfall that has widened 10 times since 2007.

Zijin Mining's $1 billion acquisition of Canada's Continental Gold may be the beginning of a new acquisition wave for Chinese SOEs.

With a new central clearing system and direct physical linkages to Shanghai, Hong Kong is overhauling its bullion infrastructure to cement its role as Asia's premier gold trading hub.