Newmont to divest Akyem for up to $1.5 billion

Newmont has entered into a definitive agreement to sell its Akyem gold mine in Ghana to Zijin Mining Group for up to $US1 billion ($1.5 billion).

This deal marks a significant step in Newmont’s strategy to focus on its Tier 1 assets, which are expected to drive long-term growth and shareholder value.

The transaction includes a cash consideration of $US900 million upon closing, with an additional $US100 million contingent on certain conditions being met.

Proceeds from the sale will be used to bolster Newmont’s balance sheet and return capital to shareholders.

“The sale of Akyem represents continued progress on the non-core asset divestiture program announced in February, supporting our focus on the Tier 1 assets in Newmont’s portfolio that will drive sustainable growth and the return of capital to shareholders,” Newmont’s president and chief executive officer Tom Palmer said.

“We believe the proposed transaction results in the greatest overall value for Newmont shareholders and is the best strategic fit for Akyem.

“We are confident that Akyem will continue to thrive under new ownership with long-term benefits for local stakeholders and surrounding communities.”

Palmer said the successful completion of this transaction will strengthen Ghana as a favourable mining jurisdiction, with Newmont committed to supporting the growth and development of the region which includes the development of Ahafo North.

“In line with President Afuko-Addo’s address in February, we ensured that our robust divestment process provided equal opportunity for all potential buyers, Ghanaian and international, to participate,” Newmont managing director for Africa Rahman Amoadu said.

“Additionally, we have included the minerals income investment fund (MIIF) in the process in preparation of their potential investment in Akyem to further Ghanaian interest in the mine.”

The transaction is expected to close in the fourth quarter of 2024, pending regulatory approvals.

With the Akyem divestment, Newmont does not anticipate a material impact on its 2024 outlook and remains committed to its investments in Ghana, including between $950 million–1.05 billion in development capital for Ahafo North.