US-based gold major Newmont has agreed to sell its Akyem mine, in Ghana, to Chinese mining giant Zijin Mining for up to $1-billion in cash.

The sale forms part of the miner’s ongoing strategy to offload noncore assets following the closing of its acquisition of Newcrest Mining in 2023.

Last month, the Denver-based company agreed to sell two Australian assets for up to $475-million. Other assets that remain on the chopping block include the Éléonore, Musselwhite and Porcupine mines and Coffee project, in Canada, as well as the CC&V mine, in the US.

“We believe the proposed Akyem transaction results in the greatest overall value for Newmont shareholders and is the best strategic fit for the mine.

“We are confident that Akyem will continue to thrive under new ownership with long-term benefits for local stakeholders and surrounding communities,” Newmont CEO Tom Palmer said in a statement.

Despite the sale, Newmont remains committed to its operations in Ghana, with plans to invest between $950-million and $1.0-billion in the development of the Ahafo North gold mining project in the Ahafo region.

Palmer pointed out that the successful completion of the Akeym sale strengthened Newmont’s confidence in Ghana as a favourable mining jurisdiction. “Newmont will continue to support the growth and development of the region including the development of our Ahafo North project.”

Newmont MD for Africa Rahman Amoadu highlighted that the divestment process adhered to the principles set out by Ghana President Nana Akufo-Addo, ensuring that both Ghanaian and international parties had equal opportunities to participate.

“Additionally, we have included the Minerals Income Investment Fund in the process in preparation of their potential investment in Akyem to further Ghanaian interest in the mine,” said Amoadu.

The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals and customary conditions. As such, Newmont has not adjusted its 2024 guidance, with the deal not expected to significantly impact this year’s outlook.

Under the terms of the agreement, Newmont will receive a cash consideration of $900-million upon closing, with a further $100-million expected to be received upon the satisfaction of certain conditions.

The proceeds from the sale will be used to support Newmont’s capital allocation priorities, including strengthening its balance sheet and returning value to shareholders.