In a major deal set to reshape the mining landscape in Ghana, China's Zijin Mining Group is acquiring the Akyem gold mine from US-based Newmont Corporation in a $1 billion transaction.

The acquisition, facilitated through Zijin’s subsidiary, Gold Source International, includes $900 million in cash with an additional $100 million contingent upon specific conditions and is expected to close in the final quarter of 2024.

The Akyem open-pit mine, located in the Eastern Region of Ghana, has proven reserves of 34.6 tons of gold as of December 2023.

As part of its long-term strategy, Zijin plans to extend the mine's lifespan by shifting operations underground by 2028, aiming to boost annual gold production to 5.8 tons and sustain operations until 2042.

Strategic Expansion

This acquisition is part of Zijin’s broader strategy to increase its global gold output from 68 tons in 2023 to 110 tons by 2028. The company sees significant potential in the Akyem project, especially with current and projected gold prices remaining favorable.

Additionally, several Ghanaian firms have expressed interest in acquiring minority stakes in the mine, a possibility that Zijin is open to exploring.

Newmont's Ongoing Commitment to Ghana

Despite selling the Akyem project, Newmont remains committed to its operations in Ghana. Tom Palmer, President and CEO of Newmont, emphasized that the sale aligns with the company’s strategy to return capital to shareholders while continuing to benefit local communities.

Newmont will retain a significant presence in the country through its Ahafo North project, where it plans to invest up to $1.05 billion.

Palmer highlighted Ghana as a favorable mining destination, reinforcing Newmont’s confidence in the region's future growth.

The sale marks a significant milestone for both companies, signaling Zijin’s continued global expansion and Newmont’s strategic portfolio reshaping, all while reinforcing Ghana’s role as a key player in the global gold mining industry.