US gold mining company Newmont has commenced the sale process for its Akyem gold mine in Ghana, a move that has piqued the interest of several potential bidders, including Chinese producers, Bloomberg reported.
The move comes at a time when gold prices have been recording a significant surge.
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For this sale, Newmont is collaborating with Citigroup to manage the disposal and has begun engaging with potential buyers, people familiar with the development said.
Shandong Gold Mining and Zijin Mining Group are among the early contenders expressing interest in the Akyem asset.
Chifeng Jilong Gold Mining is also evaluating the Akyem mine, while Australian mining company Perseus Mining said last month that it would consider acquiring the asset.
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In 2022, Akyem reported annual gold production of 420,000oz.
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By GlobalDataHowever, discussions are still in the preliminary stages, and there is no certainty that these suitors will submit formal bids, according to the sources.
The decision to sell Akyem is part of Newmont’s broader strategy to generate $2bn in cash through asset sales following its acquisition of Newcrest Mining in November.
In addition to Akyem, Newmont is looking to divest four gold mines in North America and one in Australia, according to the news agency.
Newmont reported a net loss attributable to its stockholders of $2.47bn for the financial year 2023, hit by impairment charges and costs tied to the Newcrest buyout.
The company’s revenue for the year remained flat at $11.81bn.
