Newmont’s sale of the Akyem gold mine in Ghana to Zijin Mining Group has been officially ratified, with the final $US100 million ($154 million) being paid.
In October 2024, Newmont announced the sale of Akyem to Zijin Mining Group for up to $US1 billion. The deal was part of Newmont’s larger plan to divest mines and projects it doesn’t consider to be ‘Tier 1’ assets.
Newmont defines a Tier 1 asset as an operation with “(more than) 500,000 gold equivalent ounces per year consolidated, (an) average all-in sustaining cost per ounce in the lower half of the industry cost curve, and a mine life (greater than) 10 years in countries classified in the A and B rating ranges of Moody’s, S&P and Fitch”.
As per the agreement, Zijin Mining Group paid a cash consideration of $US900 million upon the transaction’s closing and planned to pay an additional $US100 million when certain conditions were met, including the Parliament of Ghana ratifying the extended Akyem East mining lease.
Now, the Parliament of Ghana has ratified the renewal of the Akyem East mining lease, with Zijin Mining Group making a $US100 million payment to Newmont.
The payment brings Newmont’s total after-tax cash proceeds from the Akyem sale to approximately $US770 million.
“Newmont now expects to generate $US3.1 billion in after-tax cash proceeds from its divestiture program in 2025, including $2.6 billion from divested assets and approximately $US470 million from the sale of equity shares in Greatland Resources and Discovery Silver Corp,” Newmont said.
“The proceeds will support Newmont’s capital allocation priorities, which include reducing outstanding debt and returning capital to shareholders.”