Zijin Mining Group Co Ltd, a Fujian province-based miner of metal ores and the country's largest gold producer, has been stepping up efforts in recent years to make acquisitions overseas to meet surging demand in the global market.

Formed in 1993, Zijin Mining specializes in the exploration and development of gold, copper, zinc and other mineral resources.

Canada's Continental Gold Inc said in a statement on Dec 2 that Zijin Mining is planning to acquire all of its outstanding shares at 5.5 Canadian dollars ($4.2) per share for about 1.4 billion Canadian dollars. Continental's board has approved the deal after receiving the go-ahead from a special internal committee of independent directors.

"The all-cash offer at a significant premium to market is an excellent outcome for our shareholders," said Ari Sussman, CEO of Continental who is also on its board of directors.

This was Zijin Mining's second overseas acquisition in 2019. On Jan 1 last year, it disclosed a plan to offer additional shares to public to raise no more than 8 billion yuan ($1.15 billion), which will go toward the 9.53 billion yuan needed to acquire the outstanding shares of Canada-based miner Nevsun Resources Ltd.

By Jan 8 last year, shareholders holding 92.4 percent of Nevsun's total issued equity had accepted Zijin Mining's offer, indicating that the latter's offer was successful.

"Our successful overseas acquisitions will increase the reserves and production of copper, gold and zinc significantly. These overseas projects will help drive the group's future growth and profits," said Chen Jinghe, chairman of Zijin Mining.

According to Zijin Mining, in the first half of 2019, its output of mined copper and gold surged. Gold output alone reached 11.2 metric tons, or nearly 59 percent of the total output. Overseas gold production grew 37 percent year-on-year.

"With the acquisition of new overseas projects, the production of the company's mineral products will see significant growth, laying a solid foundation for the robust growth of the company's profits and cash flow," Chen said.

Currently, Zijin Mining owns nine mines overseas. The first one it acquired was Australia-based Norton Gold Fields Ltd.

In Aug 2012, Zijin Mining's wholly owned overseas subsidiary acquired an 89.15-percent stake in Norton Gold Fields, becoming the first Chinese enterprise to successfully buy out a major gold mine overseas. In June 2015, Zijin Mining bought out the residual stake, thus making Norton Gold Fields its 100-percent subsidiary.

In later years, its mergers and acquisitions overseas included the Taldybulak Levoberezhny gold mine in Kyrgyzstan, the Porgera gold mine in New Guinea, the Kamoa-Kakula copper mine in the Democratic Republic of Congo, and the Rio Blanco copper mine in Peru.

From 2013 to 2018, sales revenue of Zijin Mining more than doubled, from 50 billion yuan to over 100 billion yuan. One of the reasons for its success was that it attached great importance to its go-global strategy, said Ye Kun, an independent business consultant and investment manager.

According to the company, in 2018, its operating income reached 106 billion yuan, up 12 percent. Its net profit surged by nearly 17 percent to 4.1 billion yuan. Total assets were worth 112.9 billion yuan, up 26 percent.

In the same year, overseas gold production was 19 tons, accounting for 52 percent of the total, while its overseas copper production reached 60,000 tons, taking up 24 percent of the total. Its overseas zinc production, which was 99,900 tons, accounted for almost 36 percent of the whole production.

"It is estimated that the production of its major products overseas will surpass that of the domestic market in the coming two to three years," Ye said.

Chen from Zijin Mining said that this year, the company must unswervingly adhere to the direction of international development, by accelerating the construction process of existing major overseas projects, and improving the overall management and operations, including at its overseas subsidiaries.

Chen said: "In addition, we will continue to hire or consult with international professionals. As the company's go-global process accelerates, international professionals become increasingly important to our development. We should work out an innovative mode of cultivating international talent, integrating domestic and overseas efforts.

"We are striving to make the overseas profit contribution surpass that of the domestic market in the next three years."

Xinhua contributed to the story.