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Zijin Mining Group, a major Chinese mining company, is set to acquire the Akyem gold mine in Ghana from Newmont Corporation in a deal worth $1 billion. The transaction involves $900 million in cash upon closing and an additional $100 million contingent on specific conditions, with finalization expected by the fourth quarter of 2024.
Zijin, through its subsidiary Gold Source International, will take over Newmont’s subsidiary that operates the Akyem open-pit mine. As of December 2023, the mine held gold reserves totaling 34.6 tons. Zijin has ambitious plans to begin underground mining at the site by 2028, extending the mine’s operations until 2042 and increasing annual gold production to 5.8 tons.
The deal is part of Zijin’s broader expansion strategy, which aims to raise its gold output from 68 tons in 2023 to 85 tons by 2025 and 110 tons by 2028. Several Ghanaian entities have expressed interest in acquiring a minority stake in the mine, and Zijin is open to exploring potential partnerships.
Newmont, despite divesting Akyem, has reaffirmed its commitment to Ghana, particularly through its continued investment in the Ahafo North project, where it plans to invest up to $1.05 billion. Tom Palmer, Newmont’s President and CEO, stated that the sale aligns with the company’s strategy of returning capital to shareholders while benefiting local communities. Palmer expressed confidence in Ghana as a favorable mining destination and highlighted Newmont’s ongoing role in supporting the region’s growth.
