China’s Zijin Mining Group is poised to acquire the Akyem gold mine project in Ghana from US-based Newmont Corporation in a $1 billion transaction.
The deal includes an upfront payment of $900 million upon completion, with an additional $100 million subject to certain conditions. The transaction is expected to close by the end of the fourth quarter in 2024.
Zijin, through its subsidiary Gold Source International, will take over Newmont’s subsidiary that operates the Akyem open-pit mine. By December, the mine held reserves of 34.6 tons of gold. Zijin has outlined plans to commence underground mining at the site by 2028, extending the mine’s operational life to 2042 and raising annual production to 5.8 tons of gold.
The company also stated that several Ghanaian groups have expressed interest in purchasing a minority stake in the mine, and Zijin is open to exploring these opportunities.In a statement, Zijin highlighted the “significant potential” of the project, especially considering both current and anticipated gold prices.
This acquisition is in line with Zijin’s ambitious growth strategy, which aims to raise its gold production from 68 tons in 2023 to 85 tons by 2025 and 110 tons by 2028.
Newmont’s commitment to Ghana
Although Newmont is divesting from the Akyem project, the company reaffirmed its strong commitment to Ghana. Tom Palmer, Newmont’s President and CEO, stated that the sale fits within the company’s goal of delivering value to shareholders while also securing lasting benefits for the local community.
He also pointed to Newmont’s ongoing investments in the country, particularly the Ahafo North project, where the company plans to invest up to $1.05 billion.
“The successful completion of this transaction will strengthen our confidence in Ghana as a favourable mining jurisdiction,” Palmer added, underscoring Newmont’s plans to support the region’s growth.