In a $1 billion transaction, US-based Newmont Corporation is set to sell Ghana’s Akyem gold mine property to China’s Zijin Mining Group.
The deal is anticipated to close in the fourth quarter of 2024 and include $900 million in cash upon closing plus an additional $100 million contingent upon certain requirements.
Zijin will assume ownership of the Akyem open-pit mine from Newmont through its subsidiary, Gold Source International. 34.6 tons of gold were in reserve at Akyem as of December. According to plans disclosed by Zijin, underground mining would start at the location by 2028, extending the mine’s life to 2042 and increasing its yearly production to 5.8 tons of gold.
Zijin added that the business is still open to considering transactions involving the minority stake acquisitions that various Ghanaian organizations have expressed interest in obtaining from the mine. According to a statement from Zijin, the project has “significant potential” given the current and anticipated future prices of gold.
In line with its ambitious expansion plan, which calls for increasing gold output from 68 tons in 2023 to 85 tons by 2025 and 110 tons by 2028, this acquisition supports Zijin’s growth.
Newmont stressed its continued commitment to Ghana even after selling its stake in the Akyem project. The sale, according to Newmont President and CEO Tom Palmer, is consistent with the business’s goal of giving shareholders their money back while assuring long-term advantages for the neighborhood. He also emphasized Newmont’s ongoing national commitment, including its planned $1.05 billion investment in the Ahafo North project.
