Zijin Mining will buy 100% ownership of the Akyem Gold Mine, one of Ghana's largest gold mines, for USD 1 billion.

The acquisition marks Zijin Mining's seventh gold mine acquisition since 2020, aiming to boost its production.

This acquisition is crucial for achieving Zijin Mining's strategic goal of producing over 100 tonnes of gold annually by 2028.

On October 9, Zijin Mining announced the decision to acquire 100% ownership of the Akyem Gold Mine in Ghana, previously held by Newmont, for USD 1 billion. Akyem, one of Ghana's largest gold mines, commenced commercial production in October 2013. The processing plant at the site has an annual capacity of 8.5 million tonnes, with gold outputs in the past three years amounting to 11.9 tonnes, 13.1 tonnes, and 9.2 tonnes, respectively.

Zijin Mining is the fastest-growing major mining company globally in terms of copper production, having produced over 1 million tonnes of copper in 2023. The company has frequently expanded its gold mining operations in recent years, with Akyem marking its seventh gold mine acquisition since 2020.

Zijin's gold resources are well-stocked. Although the world's leading gold miners’ outputs have generally fallen short of expectations, the company is set to increase its mined gold output from 36.5 tonnes five years ago to about 73 tonnes this year. The acquisition of the Akyem project is crucial for achieving Zijin Mining's goal of producing over 100 tonnes of gold annually by 2028.

The Akyem Gold Mine has gold resources of 54.4 tonnes with an average grade of 3.36 grams per tonne, gold reserves of 34.6 tonnes with an average grade of 1.35 grams per tonne, and an additional 83 tonnes classified as underground mining inventory. The mine employs open-pit mining and carbon-in-leach processes, with stable operations and well-maintained equipment. As of December 31, 2023, the target company's total assets amounted to USD 1.227 billion, with liabilities totaling USD 518 million and net assets valued at USD 709 million; it achieved a sales revenue of USD 574 million and a net profit of USD 128 million in 2023.

Located in Ghana, where the political climate is stable, and mining policies are favorable, the Akyem mine is situated in a region with flat terrain, well-connected by highways to major cities and the significant West African port of Tema, ensuring convenient transportation and a stable supply of clean energy. Newmont, the world's leading gold company and the former owner, is renowned for its excellent operational management, contributing to the mine's stable performance, good equipment conditions, and strong profitability.

Leveraging its strong technical and operational capabilities, Zijin Mining has consistently transformed challenges into opportunities in its global operations. For instance, the acquisition of the Rosebel Gold Mine in Suriname in February 2023, one of the largest producing open-pit gold mines in South America, not only achieved a positive cash flow within the same year of acquisition but has also become a major gold producer and profit driver for the company. The project is now upgrading technologies to produce 10 tonnes of gold annually. Likewise, the Buriticá Gold Mine in Colombia, a project acquired from a Western company, took only half a year to commence production, with an annual gold output of more than 8 tonnes.

This acquisition was driven by Zijin Mining's focus on the Akyem Gold Mine’s development prospects. Located along a major global metallogenic belt, Akyem is a typical orogenic gold deposit with a strike extending over 2.5 km, dipping southeast with a depth of more than 900 m, and an orebody width ranging from 10 to 100 m. The deposit exhibits significant continuity and thickness, offering promising development and exploration potential. The project also includes four prospecting licenses, covering a total area of 79.59 km², three of which are adjacent to the Akyem Gold Mine.

Under current and anticipated future gold prices, the Akyem Gold Mine project holds considerable potential for further resource and production increases through additional exploration, economic and technical re-evaluations, and technological upgrades.

This transaction is subject to the approval of relevant authorities in China and Ghana.

Translator:Lin Xinjing   Reviser: Jian   Editor-in-Chief: Wang Jie