KEY POINTS
- Newmont sells Akyem mine to Zijin Mining for $1 billion.
- Proceeds from the sale will support Newmont’s financial priorities.
- Newmont remains committed to Ghana with Ahafo North investments.
U.S.-based gold major Newmont has agreed to sell its Akyem mine in Ghana to Chinese mining giant Zijin Mining for up to $1 billion in cash. The sale is part of Newmont’s strategy to offload noncore assets following its acquisition of Newcrest Mining in 2023.
Newmont sells Akyem mine as part of divestment strategy
Last month, the Denver-based company agreed to sell two Australian assets for up to $475 million. Other assets up for sale include the Éléonore, Musselwhite, and Porcupine mines, as well as the Coffee project in Canada, and the CC&V mine in the U.S.
“We believe the proposed Akyem transaction results in the greatest overall value for Newmont shareholders and is the best strategic fit for the mine. We are confident that Akyem will continue to thrive under new ownership with long-term benefits for local stakeholders and surrounding communities,” Newmont CEO Tom Palmer said in a statement.
Ahafo North project remains a priority for Newmont in Ghana
Despite the sale, Newmont remains committed to its operations in Ghana, with plans to invest between $950 million and $1 billion in the development of the Ahafo North gold mining project in the Ahafo region. Palmer added that the successful completion of the Akyem sale strengthened Newmont’s confidence in Ghana as a favourable mining jurisdiction.
“Newmont will continue to support the growth and development of the region, including the development of our Ahafo North project,” he said.
Newmont Managing Director for Africa Rahman Amoadu noted that the divestment process followed the guidelines set by Ghanaian President Nana Akufo-Addo, ensuring that both local and international stakeholders had equal opportunities to participate. He also mentioned that the Minerals Income Investment Fund was included in the process to facilitate its potential investment in Akyem, further promoting Ghanaian interests in the mine.
The transaction is expected 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.
Miningweekly reported that under the agreement, Newmont will receive $900 million upon closing, with an additional $100 million contingent on certain conditions being met. Proceeds from the sale will be used to support Newmont’s capital allocation priorities, including strengthening its balance sheet and returning value to shareholders.
