Chinas Zijin Acquires 1bn Ghana Goldfield

Chinas Zijin Mining Group is set to acquire the Akyem gold mine project in Ghana from US-based Newmont Corp for 1bn.

The transaction will see Zijin part with 900m in cash upon closure, and an additional 100m upon the satisfaction of certain conditions. The deal, which is expected to close in the fourth quarter, involves Zijins subsidiary, Gold Source International, acquiring a Newmont subsidiary that owns the Akyem project.

Akyems open pit mine held 34.6 tons of reserves as of December, according to a filing by Zijin to the Hong Kong Stock Exchange. The company revealed that it plans to commence underground operations at the mine from 2028, which will extend its life to 2042 and yield about 5.8 tons of gold annually.

Zijin disclosed that some Ghanaian entities have expressed an interest in acquiring a minority stake in the asset, and that the company is open to exploring potential transactions.

After study, the company believes that under current and anticipated future gold price conditions, the projects resources and reserves have significant potential, Zijin stated.