Gold Rush 2026: Dominance of Chinese gold companies on the world, preparation for record profits

News India Live, Digital Desk: While global giants like Newmont and Barrick Gold are struggling with declining production and rising costs, China’s companies like Zijin Mining and Shandong Gold are moving towards their highest ever profits.1. Historic surge in gold pricesNew milestone: Gold prices crossed $5,100 per ounce in January 2026, which is a result of global geopolitical tensions and economic uncertainty. Estimates: Many financial institutions believe that gold may touch the level of $6,000 per ounce by the end of the year.2. Zijin Mining: The world’s third-largest miner Zijin Mining, China’s largest mining company, has performed exceptionally well: Profits surge: The company’s net profit in 2025 will increase by 62% to 52 billion yuan ($7.4 billion). Production target: The company has set a target of 105 tons of gold production for 2026, which is 17% more than last year. Global Rank: Market In terms of value, Zijin has now become the world’s third largest mining company after Rio Tinto and BHP.[Image showing a massive open-pit gold mine with heavy machinery and the Zijin Mining logo]3. 3 main reasons for the success of Chinese companies Aggressive acquisitions: Chinese companies have acquired large gold mines in Ghana, Kazakhstan and other parts of Africa. Recently Zijin’s unit has announced the acquisition of Allied Gold for $5.5 billion.Counter-cyclical strategy: When other global companies were reducing their production, Chinese companies continued to invest.Cost control: Due to technological innovation and efficient management, the production costs of Chinese companies have been lower than the global average.4. Challenges of global companiesUnlike Chinese companies, international giants are facing many problems: Reduction in production: Decrease in gold content in old mines. Capital expenditure: Heavy expenses and delays in starting new projects. Stock market pressure: Shares of companies like Newmont and Barrick are under pressure due to reduced production.