The acquisition of Newmont Corporation’s Akyem Gold Mine by Chinese firm Zijin Mining Group Co. for $1 billion has been finalized.
According to reports, the deal executed through Zijin’s wholly-owned overseas subsidiary closed on April 16 after all conditions precedent were either met or waived.
The acquisition comes at a time when the Chinese company intends to expand its gold production capacity and reinforce its international growth strategy.
In a statement by Zijin, it said the acquisition was fueled by the Akyem mine’s favourable mineralisation and potential for reserve expansion.
Newmont’s President and Chief Executive Officer, Tom Palmer, said his outfit has fully executed its plan to divest non-core assets, a move aimed at optimising operational efficiency and enhancing shareholder value.
“Today, I am pleased to announce the successful completion of our non-core asset divestiture program with the sale of Akyem and Porcupine, generating total after-tax cash proceeds of approximately $850 million before closing adjustments.
“This is a significant milestone for Newmont, as we have now divested all six of our non-core operations from the program announced in early-2024. With the cash proceeds received this year, we remain committed to continuing to strengthen our balance sheet and return capital to shareholders through ongoing share repurchases,” Tom Palmer was quoted by citinewsroom.com.
Newmont obtained the mining lease for Akyem in 2010 and began commercial production in 2013.
In 2017, the Ghana Investment Promotions Center (GIPC) named Akyem the best company in Ghana for the second consecutive year.
The Akyem mine operates within 10 host communities in the Birim North District of Ghana’s Eastern Region, namely: Adausena, Yaw Tano, Old Abirem, New Abirem, Hweakwae, Tano, Afosu, Mamanso, Ntronang, and Yayaaso.
The mine employs a conventional carbon-in-leach processing method and has an annual capacity of 8.5 million tonnes.
Its gold output between 2021 and 2024 totalled 40.6 tonnes, with 2022 marking the peak year at 13.1 tonnes.
It generated $574 million in operating income and posted a net profit of $128 million in 2023, underscoring its commercial viability and operational efficiency.
Source: www.ghanaweb.com
