Zijin Mining Group Co., Ltd. has successfully acquired Newmont Corporation’s Akyem Gold Mine for $1 billion, thereby enhancing the Chinese firm’s gold production capabilities and bolstering its international expansion strategy.
The transaction, carried out through Zijin’s wholly-owned overseas subsidiary, was finalized on April 16 after fulfilling all necessary conditions or obtaining waivers.
Situated in a prominent gold-producing region, the Akyem Gold Mine operates as an open-pit facility that has demonstrated consistent production levels in recent years. It utilizes a conventional carbon-in-leach processing technique and boasts an annual throughput capacity of 8.5 million tonnes. From 2021 to 2024, the mine produced a total of 40.6 tonnes of gold, with 2022 being the most productive year at 13.1 tonnes.
In 2023, the Akyem project reported an operating income of $574 million and a net profit of $128 million, highlighting its economic viability and operational effectiveness.
In its announcement, Zijin emphasized the mine’s advantageous mineralization and the potential for reserve growth as significant reasons for the acquisition. The company intends to undertake additional geological exploration and technical assessments to enhance resource estimates and prolong the mine’s operational lifespan.
This acquisition occurs during a time of high gold prices, which supports Zijin’s broader strategy to increase gold production and diversify its asset portfolio across key mining regions.
Tom Palmer, President and Chief Executive Officer of Newmont, stated that the company has successfully completed its strategy to divest non-core assets, aimed at improving operational efficiency and maximizing 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,” remarked Tom Palmer, Newmont’s President and Chief Executive Officer.
This marks an important achievement for Newmont, as we have successfully divested all six of our non-core operations as part of the program initiated in early 2024. The cash proceeds generated this year will enable us to further enhance our balance sheet and return capital to our shareholders through continued share repurchase activities.
The total gross proceeds from the announced divestitures are anticipated to reach approximately $4.3 billion, comprising $3.8 billion from non-core divestitures and $527 million from the sale of other investments.
