Zijin Mining, one of China’s leading mining companies, is set to acquire Newmont’s Akyem gold mining operations in Ghana for $1 billion. This acquisition is part of Newmont’s strategy to divest assets deemed non-core following its merger with Australia’s Newcrest.
Under the agreement, Zijin will pay $900 million upfront in cash when the deal closes, with an additional $100 million as a deferred payment, subject to typical closing conditions.
Newmont’s divestment aligns with its broader goal of streamlining its portfolio, strengthening its balance sheet, and returning capital to shareholders. This was reiterated by Newmont’s CFO Karyn Ovelmen and COO Natascha Viljoen during the Gold Forum Americas 2024 held last month.
The Akyem sale follows Newmont’s $475 million cash and stock transaction with Greatland Gold, backed by Andrew Forrest, for its Havieron and Telfer gold assets in Western Australia. With more North American assets on the market, Newmont anticipates approximately $2 billion in proceeds from its ongoing divestiture program.
Despite the sale of Akyem, Newmont’s President and CEO, Tom Palmer, assured that the company remains committed to its operations in Ghana through its Ahafo project. “We are confident that Akyem will thrive under new ownership, benefiting local communities and stakeholders in the long term,” Palmer stated.
He added, “This transaction reaffirms our confidence in Ghana as a favorable mining jurisdiction. Newmont will continue to invest in the region, particularly through our development at Ahafo North.”
Newmont has outlined plans to invest around $1 billion into the Ahafo North development, reinforcing its long-term commitment to Ghana.
The acquisition by Zijin is expected to close by the end of the year, subject to regulatory approvals and standard closing conditions. Citi Bank is acting as Newmont’s financial advisor for this transaction.
Akyem produced 100,000 ounces of gold in 2023, with production expected to rise to approximately 170,000 ounces in 2024.
Newmont’s shares increased by around 1% to A$78.84 by midday on Wednesday, capitalizing the miner at $60.5 billion. The stock has risen over 70% from its February low of approximately $45.
