- Newmont sells Akyem mine to Zijin Mining for $1B.
- $900M upfront, $100M contingent payment.
- Proceeds to strengthen balance sheet, return capital to shareholders.
- Newmont invests $950M-$1.05B in Ghana's Ahafo North project.
Newmont Corporation, a leading gold mining company, has entered into a definitive agreement to sell its Akyem operations to Zijin Mining Group Co., Ltd. for a cash consideration of up to $1 billion. This strategic move is part of Newmont’s ongoing effort to divest non-core assets and focus on its Tier 1 assets.
The sale agreement stipulates that Newmont will receive $900 million upon closing, with an additional $100 million contingent upon meeting specific conditions. Proceeds from the transaction will be allocated towards strengthening the company’s balance sheet and returning capital to shareholders.
Newmont’s President and CEO, Tom Palmer, expressed confidence in the transaction, stating that Akyem operations will continue to thrive under Zijin Mining’s ownership. Palmer emphasized the long-term benefits for local stakeholders and surrounding communities.
The transaction is expected to close in the fourth quarter of 2024, subject to customary conditions, including regulatory approvals. As a result, Newmont does not anticipate a material impact on its 2024 outlook and has not adjusted its non-core guidance for the year.
This divestment is consistent with Newmont’s strategic focus on Tier 1 assets, which are characterized by their size, grade, and profitability. By streamlining its portfolio, Newmont aims to enhance its operational efficiency and increase shareholder value.
Newmont remains committed to Ghana, with significant investments planned for the Ahafo North gold mining project in the Ahafo region. The company has allocated $950 million to $1,050 million for development capital, demonstrating its ongoing commitment to the country.
The Akyem mine, located in Ghana’s Eastern Region, has been operational since 2013. The mine has produced over 2.5 million ounces of gold since its inception and has contributed significantly to Ghana’s economy.
Zijin Mining Group Co., Ltd., the acquiring company, is a Chinese mining conglomerate with a diverse portfolio of assets worldwide. The acquisition of Akyem operations marks a significant expansion of Zijin’s presence in Ghana.
The transaction is expected to benefit both parties, with Newmont strengthening its balance sheet and Zijin Mining enhancing its global mining portfolio. Local stakeholders and surrounding communities can also expect continued economic benefits from the Akyem operations.
Newmont’s sale of Akyem operations to Zijin Mining Group Co., Ltd. represents a strategic move to optimize its asset portfolio and focus on Tier 1 assets. The transaction is poised to deliver long-term benefits for all stakeholders involved.
