Zijin to buy Newmont’s Akyem Gold Mine in Ghana for $1bn

This move supports Zijin Mining's goal of producing more than 100 tonnes per annum (tpa) of gold by 2028.

Umesh Ellichipuram October 14 2024

Zijin Mining has announced the acquisition of the Akyem Gold Mine in Ghana from Newmont in a $1bn (7.08bn yuan) deal.

The Akyem mine, one of Ghana's largest gold operations, has been producing gold since October 2013.

This move aligns with Zijin Mining's goal to produce more than 100tpa of gold by 2028.

The Akyem Gold Mine has an annual processing capacity of 8.5mt, with gold production in recent years reaching 11.9t, 13.1t and 9.2t.

The purchase of Akyem is Zijin Mining's seventh gold mine acquisition since 2020, reflecting its ambition to expand its gold production capabilities.

The Akyem Gold Mine holds gold resources of 54.4t with a high average grade of 3.36g per tonne (g/t), gold reserves of 34.6t at an average grade of 1.35g/t and an additional 83t as underground mining inventory.

This open-pit mine utilises carbon-in-leach processes.

As of 31 December 2023, the mine's total assets were valued at $1.23bn, with liabilities of $518m and net assets of $709m. In 2023, it reported sales revenues of $574m and a net profit of $128m.

The mine's location in a region with flat terrain and good infrastructure including highways to major cities and proximity to the port of Tema supports efficient operations and the potential for future growth.

Zijin Mining is confident in the development prospects of the Akyem Gold Mine and anticipates further resource and production increases through exploration, economic and technical evaluations, and technological improvements.

The completion of this transaction is contingent upon approvals from relevant authorities in China and Ghana.

In July this year, Canada's Montage Gold launched an equity raise of up to C$170m ($123.33m) that involved Zijin Mining’s investment. Lundin Family Trusts also announced an investment of C$43m, boosting their stake in Montage Gold.

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close