Zijin Mining completes acquisition of Newmont’s Akyem Gold Mine for $1bn
Zijin Mining Group Co., Ltd. has completed the acquisition of Newmont Corporation’s Akyem Gold Mine for $1 billion, expanding the Chinese company’s gold production capacity and reinforcing its international growth strategy.
The deal, executed through Zijin’s wholly-owned overseas subsidiary, closed on April 16 after all conditions precedent were either met or waived.
Located in one of the world’s major gold belts, the Akyem Gold Mine is an open-pit operation that has maintained stable production in recent years. The mine employs a conventional carbon-in-leach processing method and has an annual throughput capacity of 8.5 million tonnes. Gold output between 2021 and 2024 totaled 40.6 tonnes, with 2022 marking the peak year at 13.1 tonnes.
In 2023, the Akyem project generated $574 million in operating income and posted a net profit of $128 million, underscoring its commercial viability and operational efficiency.
Zijin in a statement cited the mine’s favorable mineralization and potential for reserve expansion as key factors in the acquisition. The company plans to conduct further geological exploration and technical evaluations aimed at increasing resource estimates and extending mine life.
The acquisition comes amid a period of elevated gold prices, providing tailwinds for Zijin’s broader strategy to scale up gold output and diversify its asset base across key mining jurisdictions.
Newmont’s President and Chief Executive Officer, Tom Palmer, has indicated that Newmont has fully executed its plan to divest non-core assets, a move aimed at optimizing operational efficiency and enhancing 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,” said Tom Palmer, Newmont’s President and Chief Executive Officer.
“This is a significant milestone for Newmont, as we have now divested all six of our non-core operations from the program announced in early-2024. With the cash proceeds received this year, we remain committed to continuing to strengthen our balance sheet and return capital to shareholders through ongoing share repurchases.”
Total gross proceeds from announced divestitures are expected to total up to $4.3 billion, which includes $3.8 billion from non-core divestitures and $527 million from the sale of other investments.
