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Gold Rush in Ghana: Chinese Firms Eye Newmont’s Akyem Mine

Mining & Metals: Bidding Frenzy Anticipated as Gold Prices Soar

by Victor Adetimilehin

The Ghanaian gold rush is heating up, with Chinese mining giants emerging as potential frontrunners in the race to acquire Newmont Corporation’s Akyem gold mine. This development comes amid a surge in global gold prices, making existing mines highly attractive assets.

Newmont Seeks Divestiture, Akyem Mine Attracts Interest

Newmont, a Denver-based mining company, has initiated the sale of its Akyem gold mine in Ghana. This divestiture is part of a broader strategy to raise $2 billion following the company’s acquisition of Newcrest Mining in November 2023. Newmont is working with Citigroup to find suitable buyers for Akyem, along with four other gold mines in North America and one in Australia.

According to sources familiar with the deal, several companies have expressed early interest in acquiring the Akyem mine. These include prominent Chinese producers Shandong Gold Mining Co. and Zijin Mining Group Co. Additionally, Chifeng Jilong Gold Mining Co. from China is reportedly considering a bid, while Australian miner Perseus Mining has also shown interest.

Gold Price Boom Fuels Bidding Frenzy

The intense interest in the Akyem mine can be attributed, in large part, to the recent surge in gold prices. The precious metal surpassed $2,200 an ounce this week, marking a new high and a significant increase of 10% within the past month. This upward trend has made gold mines like Akyem even more valuable assets, drawing the attention of major mining companies across the globe.

It’s important to note that negotiations for the Akyem mine are still in their early stages. Potential suitors may choose not to submit formal bids after further evaluation. Representatives from Newmont, Citigroup, Shandong Gold, and Zijin Mining have declined to comment on the ongoing discussions. A spokesperson for Chifeng Jilong Gold Mining Co. has not yet responded to requests for comment.

Looking Ahead: The Future of Akyem Mine

The potential acquisition of the Akyem mine by a Chinese company would mark a significant development in the Ghanaian mining sector. China is a major player in the global gold market, and its growing interest in African resources reflects the increasing demand for the precious metal.

While the final outcome of the bidding process remains uncertain, one thing is clear: the Akyem mine is a highly coveted asset. The coming weeks and months are likely to see a flurry of activity as interested parties conduct due diligence and finalize their bids. The future of the Akyem mine hinges on which company can offer the most attractive package, considering both financial terms and a commitment to responsible mining practices.

Source: Mining.com

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