Zijin Mining Group from China is set to purchase the Akyem gold mine project in Ghana from US-based Newmont Corporation in a significant deal valued at $1 billion.
The agreement entails an initial payment of $900 million upon closure, along with an additional $100 million subject to specific conditions. The deal is expected to be finalized in the fourth quarter of 2024.
Through its subsidiary, Gold Source International, Zijin will assume control of a Newmont subsidiary that manages the Akyem open-pit mine. As of December, the mine reported gold reserves totaling 34.6 tons. Zijin plans to commence underground mining operations by 2028, which will extend the mine’s operational life to 2042 and increase its annual output to 5.8 tons of gold.
Additionally, Zijin has mentioned that various Ghanaian entities have expressed interest in acquiring a minority stake in the mine, and the company is receptive to such discussions. Zijin highlighted the project’s “significant potential” based on current and anticipated future gold prices.
This acquisition aligns with Zijin’s ambitious expansion strategy, aiming to ramp up its gold production from 68 tons in 2023 to 85 tons by 2025 and further to 110 tons by 2028.
Newmont Reiterates Commitment to Ghana’s Mining Sector
Although Newmont is divesting the Akyem project, the company has reiterated its ongoing commitment to Ghana. Tom Palmer, President and CEO of Newmont, stated that the sale aligns with the company’s strategy to return capital to shareholders while ensuring long-term benefits for local communities. He also noted Newmont’s continued investment in the country, particularly in the Ahafo North project, which is set to see an investment of up to $1.05 billion.
“The successful completion of this transaction will bolster our confidence in Ghana as a favorable mining jurisdiction,” Palmer remarked, emphasizing Newmont’s dedication to fostering the region’s growth.
Source: Zijinmining.com
