Newmont sells Akyem operation for up to $1 billion
- Newmont Corporation will sell its Akyem operation in Ghana to Zijin Mining Group for up to $1 billion.
- The transaction includes an initial cash payment of $900 million, with an additional $100 million contingent on specific conditions.
- This divestiture is part of Newmont's strategy to focus on Tier 1 assets and is expected to close in the fourth quarter of 2024.
In October 2024, Newmont Corporation announced its decision to divest its Akyem operation located in Ghana to Zijin Mining Group Co., Ltd. for a total cash consideration of up to $1 billion. The transaction is part of Newmont's strategy to streamline its portfolio by focusing on Tier 1 assets that promise sustainable growth. Upon closing, Newmont expects to receive $900 million, with an additional $100 million contingent on specific conditions being met. This divestiture aligns with Newmont's ongoing non-core asset divestiture program initiated earlier in the year, aimed at enhancing shareholder value and strengthening the company's balance sheet. The sale is anticipated to close in the fourth quarter of 2024, pending regulatory approvals and other customary conditions. Newmont remains committed to investing in Ghana, with plans to allocate between $950 million and $1.05 billion towards the Ahafo North gold mining project, further supporting the region's economic development. The company believes that the sale will benefit local stakeholders and ensure the continued success of the Akyem operation under new ownership. Financial advisers for the transaction include Citi and Treadstone Resource Partners, while legal counsel is provided by Davis Graham & Stubbs LLP and Reindorf Chambers. Newmont's leadership expressed confidence that this strategic move will yield the greatest value for shareholders and enhance the company's focus on its core assets.