MINING REFINING

Newmont to Sell Ghana Gold Mine Project for US$1.0 Billion

Tue Oct 08 2024

Newmont has agreed to sell a gold mine in Ghana to a Chinese miner for $1.0 billion, the latest divestiture by the gold-and-copper mining company as it exits non-core assets.

Zijin Mining Group will buy the 100% equity interest of Newmont in the Akyem Gold Mine Project in Ghana, the Hong Kong-listed miner said Wednesday.

The operation is one of the largest gold mines in Ghana. The processing plant's design capacity is 8.5 million tonnes a year. From 2021 to 2023, the mine produced 11.9 tonnes, 13.1 tonnes, and 9.2 tonnes of gold, respectively, Zijin said.

Newmont has been looking to divest itself of non-core 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 the future of several operations in Canada, the U.S., Australia, and Ghana.

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.

Source: https://www.marketscreener.com/