The $1 billion purchase of Newmont Corporation’s Akyem Gold Mine by Zijin Mining Group Co., Ltd. has strengthened the Chinese company’s global expansion plan and increased its capacity to produce gold.
Following the fulfilment or waiver of all prior conditions, the transaction, which was carried out through Zijin’s wholly-owned overseas subsidiary, concluded on April 16.
The Akyem Gold Mine is an open-pit operation that has maintained steady production in recent years and is situated in one of the world’s largest gold belts. The mine has an annual throughput capacity of 8.5 million tonnes and uses a traditional carbon-in-leach processing technology. Between 2021 and 2024, 40.6 tonnes of gold were produced, with 2022 being the year with the highest production at 13.1 tonnes.
The Akyem project’s operational efficiency and commercial viability were demonstrated in 2023 when it posted a net profit of $128 million and earned $574 million in operating income.
In a statement, Zijin listed the mine’s advantageous mineralisation and reserve expansion potential as important considerations for the purchase. In order to increase resource estimates and prolong mine life, the business intends to carry out additional geological exploration and technical assessments.
The purchase coincides with a surge in gold prices, which supports Zijin’s overarching plan to increase gold production and diversify its holdings across important mining jurisdictions.
In order to maximise operating efficiency and increase shareholder value, Newmont has fully implemented its plan to sell up non-core assets, according to Tom Palmer, the company’s president and chief executive officer.
“With the sale of Akyem and Porcupine, we successfully completed our non-core asset divestiture program today, generating approximately $850 million in after-tax cash proceeds before closing adjustments,” stated Tom Palmer, President and CEO of Newmont.
Since we have now sold off all six of our non-core businesses from the program that was announced in early 2024, this is a major milestone for Newmont. We are still dedicated to using this year’s cash proceeds to improve our balance sheet and give shareholders their money back through continuous share repurchases.
It is anticipated that the total gross proceeds from the announced divestitures will reach $4.3 billion, which includes $527 million from the sale of other interests and $3.8 billion from non-core divestitures.
