Newmont Sells Akyem Mine in Ghana to Zijin Mining for Up to $1 Billion
US-based gold giant Newmont has reached an agreement to sell its Akyem mine in Ghana to Chinese mining firm Zijin Mining for up to $1 billion in cash.
This sale is part of Newmont’s ongoing strategy to divest non-core assets following its acquisition of Newcrest Mining in 2023.
Last month, the Denver-based company also agreed to sell two Australian assets for up to $475 million. Additional assets on the market include the Éléonore, Musselwhite, and Porcupine mines, along with the Coffee project in Canada, as well as the CC&V mine in the US.
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“We believe the proposed Akyem transaction offers the greatest overall value for Newmont shareholders and is the best strategic fit for the mine,” said Newmont CEO Tom Palmer in a statement.
“We are confident that Akyem will continue to thrive under new ownership, benefiting local stakeholders and surrounding communities.”
Despite this sale, Newmont remains committed to its operations in Ghana, with plans to invest between $950 million and $1 billion in developing the Ahafo North gold mining project in the Ahafo region.
Palmer emphasized that the successful completion of the Akyem sale bolsters Newmont’s confidence in Ghana as a favorable mining jurisdiction. “Newmont will continue to support the growth and development of the region, including the Ahafo North project,” he added.
Newmont’s Managing Director for Africa, Rahman Amoadu, noted that the divestment process adhered to principles outlined by Ghanaian President Nana Akufo-Addo, ensuring equal opportunities for both Ghanaian and international participants.
“Additionally, we have included the Minerals Income Investment Fund in the process to prepare for their potential investment in Akyem, further enhancing Ghanaian interests in the mine,” Amoadu said.
The transaction is anticipated to close in the fourth quarter of 2024, pending regulatory approvals and customary conditions. Newmont has not adjusted its 2024 guidance, as the deal is not expected to significantly impact this year’s outlook.
Under the agreement’s terms, Newmont will receive $900 million in cash upon closing, with an additional $100 million to be paid upon satisfying certain conditions.
The proceeds from the sale will be directed towards supporting Newmont’s capital allocation priorities, including strengthening its balance sheet and returning value to shareholders.
