Shares of Zijin Mining (2899) rose 4.2 percent on Friday following a report that the firm plans to spin off its unit Zijin Gold International for a Hong Kong initial public offering that could raise up to US$2 billion (HK$15.6 billion).
The unit might file for an IPO in the coming weeks to seek US$1 billion to US$2 billion from the share sale, according to a Bloomberg report.
Zijin announced the plan last month as part of a reorganization of its overseas gold assets.
This involves mines located in South America, Central Asia, Africa and Oceania, including the Buritica project in Colombia, the nation's largest gold mine, which faced an attack by illegal miners in late January.
After the spin-off and listing, Zijin Gold will continue to be a subsidiary, with the timing of the process coinciding with the upward cycle of gold prices and potentially reducing overseas operational risks, Zijin said in May.
Staff reporet and Reuters
