Story
Zijin Longking Shares Rise on $232 Million South American Renewable Energy Investment
Summary
The environmental and new energy firm announced plans to build solar and battery storage facilities at its gold mines in Suriname and Guyana, boosting investor confidence despite a broader market downturn.
Shares of Zijin Longking (SSE: 600388) climbed 1.9% to 17.55 yuan on Thursday, outperforming a weaker Chinese market after the company announced a significant investment in overseas renewable energy projects.
The gains followed a disclosure that the company's board had approved plans to invest approximately $232 million in solar and battery storage facilities at gold mining sites in South America.
Overseas Energy Expansion
The projects will be developed by Zijin Longking Clean Energy, a wholly-owned subsidiary, and funded entirely through the company's internal resources. The investments are aimed at reducing the mines' reliance on diesel-powered electricity generation.
Key details of the approved projects include:
- Suriname: A phase II solar-storage facility at the Rosebel gold mine with a total investment of roughly $150 million. This project will feature 170 megawatts peak (MWp) of solar capacity combined with a 120 megawatt-hour (MWh) energy storage system.
- Guyana: Two separate projects at the Aurora gold mine, one for the processing plant ($55 million) and another for the underground facility ($27 million). Both are expected to be completed by the fourth quarter of 2027.
AdStrategic Rationale and Financial Health
These investments align with Zijin Longking's dual-segment business model, which combines environmental protection equipment with new energy solutions. The move also supports Suriname's national push for a green energy transition in its industrial sector.
The company's ability to self-fund the expansion is supported by strong recent performance. For the first half of 2026, Zijin Longking reported year-on-year revenue growth of nearly 15% and net profit growth of approximately 25%.
Market Reaction
The positive investor response to the announcement contrasted with the broader market trend on Thursday. Zijin Longking's share price increase occurred while major Chinese benchmarks, including the CSI 300 and the SSE Composite Index, were both trading in negative territory, highlighting the market's specific approval of the company's strategic move.
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