Newmont to Sell Ghana Gold Mine Project for $1.0 Billion
Zijin Mining Group will buy Newmont’s 100% equity interest in the Akyem Gold Mine Project in Ghana
Newmont NEM -0.45%decrease; red down pointing triangle has agreed to sell a gold mine in Ghana to a Chinese miner for $1.0 billion, the latest divestiture by the world’s biggest gold miner as it turns its focus to copper.
Zijin Mining Group 601899 -3.67%decrease; red down pointing triangle will buy Newmont’s 100% equity interest in the Akyem Gold Mine Project in Ghana, the Hong Kong-listed miner said Wednesday.
Newmont it has been looking to sell noncore assets to focus on copper, which is in high demand as the world moves away from fossil fuels, given the metal’s role in electric vehicles, solar and wind-energy production. Its chief executive said late last year that the company would be scrutinizing several operations in Canada, the U.S., Australia, and Ghana.
The Akyem operation is one of the largest gold mines in Ghana. The processing plant’s capacity is 8.5 million metric tons a year. From 2021 to 2023, the mine produced 11.9, 13.1 and 9.2 metric tons of gold, respectively, Zijin said.
In September, the Colorado-based company sold its stakes in Australian assets Telfer and Havieron for up to $475 million.
Proceeds from the sale of the Ghana mine will be used to support the company’s capital allocation priorities, including strengthening its balance sheet and returning capital to shareholders, Newmont said.
The transaction is expected to close in the fourth quarter of 2024, subject to approvals.