China's Jiangxi Copper Secures Major Ecuador Copper Asset in $1.2 Billion SolGold Takeover

December 25, 2025 · by Fintool Agent

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Jiangxi Copper's Hong Kong investment arm has agreed to acquire Solgold for £867 million ($1.17 billion), securing control of one of the world's largest undeveloped copper-gold deposits as Chinese companies accelerate their push to lock up strategic resources essential for the global energy transition. 1

The all-cash deal, announced on Christmas Eve, values SolGold at 28 pence per share—a 43% premium to the London-listed miner's closing price before Jiangxi's first approach in November. 2 The transaction gives China's largest copper producer control of the Cascabel project in Ecuador's Imbabura province, home to what SolGold describes as one of South America's premier undeveloped copper-gold resources.

Deal Structure and Shareholder Support

Jiangxi Copper (Hong Kong) Investment Company Limited, which already held a 12.2% stake in SolGold, secured irrevocable undertakings from the company's second and third-largest shareholders—BHP-0.90% Billiton Holdings (12.8%) and Newcrest International Pty Ltd, a subsidiary of Newmont-1.97% (12.9%). Together with board support, this brings backing for the deal to approximately 28.5% of shares outstanding. 3

The scheme of arrangement requires approval from at least 75% of SolGold shareholders. Completion is expected in the first quarter of 2026, subject to regulatory and court approvals.

"JCC is delighted to have received the unanimous recommendation of the SolGold board and strong support from other large shareholders in favour of the acquisition," said Shaobing Zhou, vice chairman and general manager of Jiangxi Copper. "JCC is excited by the potential of the Cascabel project." 4

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Why Copper Matters: The Strategic Calculus

The acquisition underscores the intensifying global competition for copper—the metal essential to electrification, AI infrastructure, and the energy transition. Unlike other base metals, copper has no viable substitute for electrical conductivity, making it irreplaceable in:

• Electric vehicles, which use 4x more copper than traditional internal combustion vehicles
• Renewable energy systems, requiring 4-5x more copper per megawatt than fossil fuel generation
• AI data centers, demanding massive electrical infrastructure for power delivery and cooling
• Grid modernization, as countries upgrade aging transmission networks

"Copper is the metal when it comes to electrification," Freeport-mcmoran-1.21% CEO Kathleen Quirk told analysts in January. "In the U.S., our customers are reporting solid demand for power cable and building wire associated with substantial investment in electrical infrastructure and AI data centers." 1

Industry forecasts project copper demand to double by 2035, while existing mine supply faces depletion and new projects require decade-long development timelines. 2

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Copper Miners on Fire in 2025

The strategic importance of copper is reflected in equity valuations. Major copper producers have delivered exceptional returns year-to-date, with several trading at or near all-time highs:

Values retrieved from S&P Global

Both Freeport-mcmoran-1.21% and Southern Copper-1.38% are trading at 52-week highs, reflecting investor conviction in the structural copper supply deficit narrative.

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What Jiangxi Gets: The Cascabel Prize

The Cascabel project represents one of the most significant undeveloped copper-gold deposits globally. Located in Ecuador's Northern Highlands, the project has attracted investment from some of the world's largest miners—including BHP and Newmont—despite SolGold's inability to bring it to production independently.

Jiangxi Copper, as the project's new owner, brings several advantages:

1. Financial resources: As China's largest copper producer, Jiangxi has the balance sheet to fund the multi-billion dollar development
2. Technical expertise: Decades of experience in large-scale copper mining operations
3. Strategic patience: Chinese state-linked enterprises often take longer development horizons than Western miners
4. Vertical integration: Ability to process Cascabel output through existing smelting infrastructure

"While recognising that SolGold's management has significantly advanced the Cascabel Project, JCC believes additional work and investment is needed to establish JCC's own development plan and optimise the project's value over the entire life of mine," SolGold stated. 1

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China's Resource Security Push

The SolGold deal represents the latest in a series of Chinese acquisitions targeting strategic metals. Beijing has prioritized securing long-term access to copper, lithium, cobalt, and rare earth minerals essential for its manufacturing dominance in EVs, batteries, and renewable energy equipment.

For U.S. investors, the transaction carries broader implications:

For BHP and Newmont: The irrevocable support agreements suggest both mining giants see the 43% premium as attractive exit pricing for their SolGold positions. BHP in particular has been disciplined about portfolio optimization, divesting non-core assets to focus on tier-one operations.

For the copper market: The deal removes a significant future copper source from potential Western development, tightening the long-term supply outlook and potentially supporting copper prices.

For competing miners: As undeveloped copper deposits become scarcer, valuations for development-stage copper projects may rise, benefiting companies with similar assets.

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What to Watch

• Shareholder vote: Expected in Q1 2026, requiring 75% approval
• Regulatory clearance: Chinese outbound investment approval already secured; remaining conditions routine
• BHP and Newmont positioning: Whether the majors redeploy proceeds into other copper opportunities
• Cascabel development timeline: Jiangxi's plans for bringing the project to production

Related

• BHP Group (bhp)-0.90% - Second-largest shareholder selling stake
• Newmont Corporation (nem)-1.97% - Third-largest shareholder selling stake
• Freeport-mcmoran (fcx)-1.21% - Largest U.S. copper producer
• Southern Copper (scco)-1.38% - Major copper producer trading at all-time highs