China’s Zijin Mining Group has reached an agreement to acquire the Akyem Gold Mine in Ghana from U.S.-based Newmont Corporation for $1 billion, in a deal that signals Newmont’s strategy to offload non-core assets and focus on its Tier 1 operations.
The transaction is set to close in the fourth quarter of 2024. According to the terms of the agreement, Newmont will receive an initial payment of $900 million in cash at the close of the deal, with an additional $100 million contingent upon the satisfaction of certain conditions. Zijin’s subsidiary, Gold Source International, will assume control of the Newmont unit that operates the Akyem project.
In a statement released on October 8, Newmont President and CEO, Tom Palmer, emphasized that the sale is part of Newmont’s broader initiative to focus on its most profitable assets.
“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 said.
He further noted that the Akyem project, under new ownership, is well-positioned to generate long-term benefits for local stakeholders and surrounding communities.
Zijin Mining, which has rapidly expanded its global footprint in recent years, highlighted the Akyem mine’s potential for profitability under current and future gold price conditions. The Chinese company also indicated that Ghanaian entities had expressed interest in acquiring a minority stake in the asset, and Zijin is open to exploring such partnerships.
Rahman Amoadu, Managing Director of Newmont Africa, underscored Newmont’s commitment to ensuring an inclusive 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,” he said. Amoadu also mentioned the involvement of the Minerals Income Investment Fund (MIIF) as part of efforts to support Ghanaian interests in the mine.
While the sale of Akyem is a major step in Newmont’s divestiture plan, the company remains committed to its operations in Ghana. Newmont is investing between $950 million and $1.05 billion in the Ahafo North gold mining project in the Ahafo region, signaling continued confidence in Ghana as a favorable mining jurisdiction.
The transaction is subject to regulatory approvals and customary conditions precedent. Newmont has confirmed that the sale will not have a material impact on its 2024 financial outlook.
Citi acted as Newmont’s exclusive financial adviser in the deal, with strategic advice from Treadstone Resource Partners and legal counsel provided by Davis Graham & Stubbs LLP and Reindorf Chambers.