Zijin Mining completes acquisition of Newmont’s Akyem Gold Mine for $1bn

Zijin Mining Group Co., Ltd. has acquired Newmont Corporation’s Akyem Gold Mine for $1 billion. This purchase boosts Zijin’s gold production capacity and supports its international growth strategy. The deal was finalized on April 16 through Zijin’s overseas subsidiary after meeting all conditions.

The Akyem Gold Mine is located in a major gold belt. It operates as an open-pit mine and has stable production levels. The mine uses a carbon-in-leach processing method with an annual throughput of 8.5 million tonnes. From 2021 to 2024, it produced a total of 40.6 tonnes of gold, peaking at 13.1 tonnes in 2022.

In 2023, the Akyem project generated $574 million in operating income and $128 million in net profit. This highlights its commercial viability and operational efficiency.

Zijin noted the mine's favorable mineralization and potential for reserve expansion as key reasons for the acquisition. The company plans further geological exploration to increase resource estimates and extend the mine's life.

This acquisition occurs during a time of high gold prices, which benefits Zijin’s strategy to increase gold output and diversify assets across mining jurisdictions.

Newmont’s President and CEO, Tom Palmer, stated that Newmont has completed its plan to divest non-core assets. This move aims to improve operational efficiency and enhance shareholder value.

Palmer announced the successful completion of their non-core asset divestiture program with the sale of Akyem and Porcupine mines. This generated approximately $850 million in after-tax cash proceeds before closing adjustments.

He called this a significant milestone for Newmont, having divested all six non-core operations from their early-2024 program announcement. With these cash proceeds, Newmont aims to strengthen its balance sheet and return capital to shareholders through share repurchases.

Total gross proceeds from announced divestitures are expected to reach up to $4.3 billion. This includes $3.8 billion from non-core divestitures and $527 million from other investments sold.