In a significant move to bolster its gold reserves, China’s leading mining enterprise, Zijin Mining, plans to invest $1 billion to acquire 100% ownership of the Akyem gold mine project in Ghana. This acquisition involves purchasing the entire stake from Newmont, which currently holds the rights to the Akyem project. Zijin Mining has stated that this acquisition will enhance its resource base in the gold sector and accelerate the growth of its gold production.
On October 9, Zijin Mining announced that its wholly-owned overseas subsidiary, Jinyuan International, has signed a share purchase agreement with Newmont’s subsidiary, Newmont Golden Ridge Ltd. This agreement aims to secure complete ownership of the company that possesses 100% rights to the Akyem gold mine.
According to the announcement, the Akyem mine is an operational project with gold production figures of 11.9 tons in 2021, 13.1 tons in 2022, and 9.2 tons in 2023. The mine is set to transition to underground extraction starting in 2028, with a lifespan extended until 2042. Over the life of the mine, it’s expected to yield an average of approximately 5.8 tons of gold annually.
Newmont Golden Ridge Ltd, registered in Ghana, reported total assets of $1.227 billion and total liabilities of $518 million as of December 31, 2023, resulting in net assets of $709 million. For the fiscal year 2023, it achieved sales revenue of $574 million with a net profit of $128 million.
Zijin Mining is globally engaged in the exploration, development, engineering design, and technical research for various mineral resources, including copper, gold, zinc, lithium, silver, and molybdenum. The company has significant mining investment projects across 17 provinces in China and 15 countries overseas.
In the first half of 2024, Zijin Mining reported a revenue of 150.4 billion yuan, reflecting a year-over-year growth of 0.06%. Its total profit amounted to 21.6 billion yuan, up 38.9% from the previous year, while net profit attributable to shareholders reached 15.1 billion yuan, marking a 46.4% increase. In terms of mineral output, copper production stood at 519,000 tons, a 5.3% increase, and gold production was 35.4 tons, up 9.5%. Notably, revenue from gold sales accounted for 46.5% of the total revenue for the first half of the year, contributing 28.3% to the group’s gross profit.
This year, global investors and central banks have increasingly turned to gold amid geopolitical instability and rising demand for safe-haven assets, driving gold prices upward. As of September 30, international gold prices saw an increase of over 27% for the first three quarters, while domestic prices in China, including the Shanghai Gold Exchange’s Au9999 and the main contract for gold futures, have risen by more than 23%.
