Zijin Mining Group, a Chinese mining giant, acquires Newmont’s Akyem Gold Project for $1 billion
Chinese firm Zijin Mining Group Co. has made a significant acquisition by purchasing Newmont’s Akyem gold project in Ghana for a staggering $1 billion in cash. This strategic move allows China’s largest listed metals producer to tap into high-grade ores located in one of the world’s major gold producers. The acquisition was disclosed in a filing to the Hong Kong Stock Exchange, emphasizing the lucrative nature of the investment.
Newmont, a US-based corporation, confirmed that the sale is part of its strategic initiative to disinvest non-core assets and shift its focus towards tier-one assets. The deal entails Newmont receiving $900 million in cash upon closure, with an additional $100 million dependent upon meeting specific conditions. This financial transaction involves Zijin’s unit Gold Source International acquiring a Newmont affiliate that holds the Akyem project.“After the study, the company is of the view that under the current and anticipated future gold price conditions, the project’s utilizable resources and reserves still have significant potential,” Zijin said in a statement.
The anticipated completion of the transaction is set for the fourth quarter of 2024, pending regulatory approvals as stated by Newmont. Zijin expressed optimism about the project’s future profitability. Moreover, the Chinese miner revealed that Ghanaian entities have shown interest in acquiring a minority stake in the asset, hinting at potential collaborative opportunities on the horizon. This acquisition marks a significant milestone for Zijin Mining Group Co. as it expands its global presence in the mining industry.
