Newmont Finalized Sale of Akyem Gold Mine to Zijin Mining

SEATTLE (Scrap Monster): Zijin Mining Group purchased the Akyem gold mine from Newmont Corporation for $1 billion in a major deal. The company's decision to simplify its international operations in order to concentrate on Tier-1 assets is reflected in the deal.

After the Ghanaian Parliament approved the extension of the Akyem East Mining Lease, the deal was finalized when Newmont collected the remaining $100 million.

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The transaction was finished in two stages. Following the transaction's closure, it was paid $900 million in the first installment. After parliamentary ratification, the final contingent payment of $100 million was received, signaling the start of the second phase. After taxes, the sale brought in about US$770 million for Newmont.

With $2.6 billion from divested assets and roughly $470 million from the sale of equity shares, Newmont now projects that its divestiture program will produce $3.1 billion in after-tax cash profits this year. The money raised will be utilized to pay down existing debts and give shareholders their money back.

The shift to Zijin mining is a reflection of the expanding power of Chinese mining companies in Africa's resource industry.