Zijin Mining Finalizes $1 Billion Akyem Acquisition
Deal News | Apr 17, 2025 | EIN
Zijin Mining Group has completed its acquisition of the Akyem Gold Mine in Ghana from Newmont Corporation for a transaction value of up to US$1 billion. This strategic move marks Zijin’s expansion into West Africa and its aggressive growth in the gold production sector. The deal includes an upfront payment of US$900 million and an additional US$100 million contingent on lease ratification or post-closing conditions. Akyem Mine, a significant gold-producing asset with modern extraction processes, generated US$574 million in revenue in 2023. The acquisition aligns with Newmont's strategy to optimize its asset portfolio, especially following its merger with Newcrest Mining. This divestment is part of Newmont’s focus on tier-one assets while investing in other projects like Ahafo North. Zijin aims to leverage the mine’s mineral potential and explore local partnerships. The transaction is emblematic of shifting dynamics in Ghana’s mining industry, with implications for local regulations and community engagement strategies.
Sectors
- Mining
- Gold Production
- Mergers and Acquisitions
Geography
- Ghana – The Akyem Gold Mine is located in Ghana, making this the primary geographical focus of the transaction.
- China – Zijin Mining Group, the acquiring company, is based in China, indicating a key international player in the transaction.
Industry
- Mining – The article focuses on the acquisition of a gold mine, underscoring activities and strategies in the mining industry.
- Gold Production – The acquisition relates specifically to the gold sector, highlighting production capacities and economic implications in gold mining.
- Mergers and Acquisitions – The central theme of the article revolves around an acquisition deal involving significant financial and strategic considerations.
Financials
- 1,000,000,000 – The total transaction value of up to US$1 billion for the acquisition of the Akyem Gold Mine.
- 900,000,000 – The initial cash payment made by Zijin Mining upon signing the acquisition agreement.
- 100,000,000 – Contingent payment by Zijin Mining awaiting parliamentary ratification or a period of five years post-closing.
- 574,000,000 – Revenue generated by the Akyem Gold Mine in 2023.
- 128,000,000 – Net profit delivered by the Akyem Gold Mine in 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Zijin Mining Group | Bidder | Company | A Chinese mining company expanding its operations in West Africa through strategic acquisitions. |
| Newmont Corporation | Seller | Company | An American mining giant optimizing its portfolio post-merger with Newcrest Mining. |
| Gold Source International | Subsidiary for Acquisition | Company | A wholly owned subsidiary of Zijin Mining Group used to execute the Akyem Mine acquisition. |
| Newcrest Mining | Portfolio Context | Company | Involved indirectly due to its merger with Newmont, affecting Newmont’s strategic decisions. |