China’s Zijin Mining Group has agreed to acquire the Akyem Gold Mine in Ghana from U.S.-based Newmont Corporation for $1 billion, signaling Newmont’s ongoing strategy to streamline its portfolio by divesting non-core assets and concentrating on its Tier 1 operations.
The transaction is expected to close in the fourth quarter of 2024.
Under the terms of the agreement, Newmont will receive $900 million in cash upon closing, with an additional $100 million contingent on fulfilling certain conditions. Zijin’s subsidiary, Gold Source International, will take over the Newmont unit responsible for operating the Akyem project.
Newmont’s President and CEO, Tom Palmer, emphasized that the sale aligns with the company’s long-term strategic goals. “The sale of Akyem represents continued progress on the non-core asset divestiture program announced in February, supporting our focus on the Tier 1 assets in Newmont’s portfolio that will drive sustainable growth and the return of capital to shareholders,” Palmer stated. He expressed confidence that the Akyem mine will thrive under new ownership, benefiting both local stakeholders and surrounding communities.
Zijin Mining, which has expanded globally in recent years, sees significant profit potential in the Akyem mine under current and future gold price scenarios. The company also revealed that Ghanaian entities have expressed interest in acquiring a minority stake in the mine, and Zijin is open to exploring such partnerships.
Rahman Amoadu, Managing Director of Newmont Africa, reiterated Newmont’s commitment to a fair and transparent divestment process. “In line with President Akufo-Addo’s address in February, we ensured that our robust divestment process provided equal opportunity for all potential buyers, Ghanaian and international, to participate,” Amoadu noted. He also mentioned that the Minerals Income Investment Fund (MIIF) is being considered for a potential investment in the Akyem project to promote Ghanaian interests.
Although Akyem’s sale is a key step in Newmont’s divestiture plan, the company remains committed to its operations in Ghana. Newmont is currently investing between $950 million and $1.05 billion in the Ahafo North gold mining project in Ghana’s Ahafo region, highlighting the company’s continued confidence in the country as a favorable mining jurisdiction.
The transaction, which is subject to regulatory approvals and customary closing conditions, is not expected to affect Newmont’s 2024 financial outlook. Citi served as Newmont’s exclusive financial adviser for the deal, with additional support from Treadstone Resource Partners as strategic adviser and legal counsel from Davis Graham & Stubbs LLP and Reindorf Chambers.
