Zijin Mining Group, through its subsidiary Gold Source International, has secured a $1 billion deal to acquire a significant gold mining asset in Ghana. The agreement involves an upfront payment of $900 million, with an additional $100 million contingent on specific conditions being met. The transaction is expected to close in the final quarter of 2024.
Zijin will assume control of a Newmont subsidiary that manages the Akyem open-pit mine, a site that held 34.6 tons of gold reserves as of December 2023. The Chinese mining giant has ambitious plans for the mine, including transitioning to underground operations by 2028, which would extend the mine’s operational lifespan until 2042. Once fully operational, Zijin projects an annual gold output of 5.8 tons from the site.
Zijin further disclosed that various Ghanaian entities have expressed interest in acquiring a minority stake in the mine. The company remains open to exploring potential partnerships. In a statement, Zijin described the project as having “significant potential,” especially given the current and projected gold price trends.
The acquisition is part of Zijin’s broader strategy to expand its gold production, aiming to increase output from 68 tons in 2023 to 85 tons by 2025, and ultimately 110 tons by 2028.
Newmont Reaffirms Commitment to Ghana
While Newmont is divesting its interest in the Akyem mine, the company has reiterated its dedication to Ghana. Newmont’s President and CEO, Tom Palmer, noted that the sale aligns with the company’s strategic focus on returning capital to shareholders while ensuring lasting benefits for the local community. He also emphasized Newmont’s continued investment in Ghana, particularly through the Ahafo North project, where the company plans to invest up to $1.05 billion.
“The successful completion of this transaction will strengthen our confidence in Ghana as a favorable mining jurisdiction,” Palmer stated, highlighting Newmont’s commitment to the country and its plans to contribute to the region’s economic growth.