The CMOC Group, one of China's largest mining companies, has expanded its precious metals portfolio with a US$1 billion deal to buy Equinox Gold Corp.'s operations in Brazil.

The deal includes two Equinox units, Leagold LatAm Holdings BV and Luna Gold Corp, which control several gold reserves and mines in Brazil. Equinox will receive $900 million in cash, plus another payment of up to $115 million one year after the deal closes, CMOC said in a statement.

CMOC, whose main focus is copper and cobalt, said its annual gold production will reach 8 tons after closing the deal with Equinox. This year, the Chinese group already bought Canadian mining company Lumina Gold Corp. for US$ 422 million. This operation guaranteed it access to Ecuador's largest gold reserve.

(Source: O Globo, on December 14)