Shanjin International Gold’s Twin Hills gold mine near Karibib is expected to cost RMB3.654 billion, equivalent to about N$8.9 billion at current exchange rates, as construction advances towards the start of production in the first half of 2027.
The latest half-year report from Shandong Gold Mining, Shanjin International’s controlling shareholder, puts total planned investment in the Namibian mining and processing project at RMB3.654 billion and shows cumulative expenditure reached RMB1.185 billion by the end of June.
That means approximately a third of the planned investment had already been spent, with construction now covering the processing plant, tailings storage facility, power infrastructure, road realignment and mining preparations.
Shandong Gold said Twin Hills is currently constructing the tailings dam, a 66kV transmission line and 11kV substation, realigning the D1941 road, pre-stripping for mining operations, and installing equipment at the processing plant.
In the first half of 2026 alone, the project spent RMB654 million, bringing cumulative expenditure to RMB1.185 billion.
The latest report also provides a more current production timeline than earlier project disclosures, saying construction is progressing towards the commencement of production in the first half of 2027.
“The construction of access roads, processing plant, and tailings storage facility for the mining and processing is being implemented in an orderly manner,” Shandong Gold said in its half-year report.
The company said equipment installation at the processing plant and earthworks for open-pit stripping are under way, while mine-pit optimisation and formation of the operations team are proceeding simultaneously.
Twin Hills is designed as a five-million-tonne-a-year open-pit mining and processing operation and, once at capacity, is expected to produce about five tonnes of gold annually, equivalent to approximately 161,000 ounces.
The production figure broadly corresponds with the 2023 Definitive Feasibility Study completed by former owner Osino Resources, which envisaged average annual production of more than 162,000 ounces over a 13-year mine life.
The RMB3.654 billion investment figure provides a more current measure of the capital Shanjin expects to put into building Twin Hills than the US$365 million initial capital estimate in Osino’s 2023 Definitive Feasibility Study.
The earlier study was prepared before Shanjin acquired Osino and before detailed engineering and construction began.
Using current exchange rates, Shanjin’s RMB3.654 billion project investment translates to approximately N$8.9 billion, making Twin Hills one of the largest mining developments currently under construction in Namibia.
The figure relates to the development of the Twin Hills mining and beneficiation project and should not be confused with the separate amount Shanjin paid to acquire Osino Resources.
Shanjin, formerly known as Yintai Gold, acquired 100% of Osino for C$368 million in an all-cash transaction completed on 29 August 2024, giving the Chinese group ownership of Twin Hills and Osino’s wider Namibian exploration portfolio.
Shanjin International is controlled by Shandong Gold Mining, which held 28.89% of its issued shares according to recent corporate filings. Shanjin’s acquisition of Osino was its first overseas strategic acquisition.
Twin Hills itself was discovered by Osino in 2019 beneath calcrete cover in the Damara Belt and was subsequently advanced through extensive drilling, resource definition and feasibility studies before the Chinese takeover.
Osino Gold Exploration and Mining holds the project, which Shanjin indirectly owns through its Osino corporate structure.
Twin Hills has proven and probable gold reserves of about 2.16 million ounces, according to Shanjin’s more recent corporate disclosures, providing the reserve base for the new open-pit operation.
The mine will use conventional open-pit mining and processing, with the plant designed to treat five million tonnes of ore annually.
Shanjin’s latest corporate disclosures put expected annual gold output at five tonnes once the mine reaches its designed production capacity, establishing Twin Hills as a significant addition to Namibia’s gold production alongside the existing Navachab and Otjikoto mines.
The development is also moving beyond construction of the processing plant itself, with supporting infrastructure including the tailings storage facility, electricity transmission and distribution infrastructure, road works and mine pre-stripping now being built simultaneously.
Osino has previously said the project benefits from its location in central Namibia, where existing roads, rail, electricity and water infrastructure are relatively close to the mine.
An important difference exists between Shandong Gold’s earlier annual report and its latest half-year disclosure on when Twin Hills will be completed.
The 2025 annual results, published in March, listed the RMB3.654 billion investment and said the project was scheduled for completion in September 2027, with a two-year construction period.
The newer half-year report, however, says Twin Hills is expected to commence production in the first half of 2027, while construction of the processing plant, tailings facility and other infrastructure continues.
