China’s Zijin Mining Group is poised to acquire the Akyem gold mine project in Ghana from US-based Newmont Corporation in a $1 billion deal.

The transaction, which includes $900 million in cash upon closure and an additional $100 million subject to certain conditions, is expected to be finalized in the fourth quarter of 2024.

Through its subsidiary, Gold Source International, Zijin will take control of a Newmont subsidiary that owns the Akyem open-pit mine. As of December, Akyem held reserves of 34.6 tons of gold. Zijin has revealed plans to begin underground mining operations at the site by 2028, extending the mine’s lifespan to 2042 and boosting its annual output to 5.8 tons of gold.

Zijin also noted that several Ghanaian entities have shown interest in acquiring a minority stake in the mine, and the company remains open to exploring such transactions. In a statement, Zijin said the project has “significant potential” under current and projected future gold prices.

This acquisition aligns with Zijin’s aggressive expansion strategy, as it aims to increase its gold output from 68 tons in 2023 to 85 tons by 2025 and 110 tons by 2028.

Newmont’s commitment to Ghana  

Despite divesting the Akyem project, Newmont emphasized its ongoing commitment to Ghana. Tom Palmer, President and CEO of Newmont, said the sale aligns with the company’s strategy of returning capital to shareholders while ensuring long-term benefits for the local community. He also highlighted Newmont’s continued investment in the country, including the Ahafo North project, where the company is set to invest up to $1.05bn.

“The successful completion of this transaction will strengthen our confidence in Ghana as a favourable mining jurisdiction,” Palmer added, underscoring Newmont’s plans to support the region’s growth.