US-based gold giant Newmont has finalized 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 broader strategy to divest non-core assets following its acquisition of Newcrest Mining in 2023. Last month, Newmont also agreed to sell two Australian assets for up to $475 million. Other assets currently on the market include the Éléonore, Musselwhite, and Porcupine mines, along with the Coffee project in Canada and the CC&V mine in the US.
Newmont CEO Tom Palmer emphasized that the Akyem sale represents the best strategic fit for the company and offers the greatest value for shareholders. He expressed confidence that Akyem will continue to thrive under Zijin Mining’s ownership, benefiting local stakeholders and communities.
Despite this sale, Newmont remains committed to its Ghana operations, 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 reaffirmed that the completion of the Akyem sale further solidifies Newmont’s confidence in Ghana as a favorable mining jurisdiction.
Newmont’s Managing Director for Africa, Rahman Amoadu, stated that the divestment process followed the principles set out by Ghanaian President Nana Akufo-Addo, ensuring equal opportunities for both Ghanaian and international participants. Additionally, the Minerals Income Investment Fund was involved in the process, preparing for a potential investment in Akyem, which would enhance 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 revised its 2024 guidance, as the deal is not expected to significantly impact this year’s financial outlook.
As part of the agreement, Newmont will receive $900 million in cash at closing, with an additional $100 million contingent on certain conditions. The proceeds from the sale will support Newmont’s capital allocation priorities, including strengthening its balance sheet and returning value to shareholders.
