Ghana has ratified the renewal of gold mining company Newmont’s Akyem East mining lease, with Zijin Mining Group agreeing to pay Newmont $100 million upon receipt of the lease ratification. After-tax, the cash proceeds from the sale amount to approximately $770 million.

Newmont expects to generate $3.1 billion in after-tax cash proceeds from its divestiture programme this year, including $2.6 billion from divested assets and approximately $470 million from the sale of equity shares in Greatland Resources Limited and Discovery Silver Corp. The proceeds will support the company’s capital allocation priorities, which include reducing outstanding debt and returning capital to shareholders.

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Akyem is an open-pit gold mine near the small town of New Abirem. Newmont applied for permits in July 2002, with development beginning in 2005 and commercial production starting in 2013. It is 2.65 km long and 900 m wide with a depth of 465 m.

Newmont owns two gold mines in Ghana, the other being Ahafo mine in the Ashanti Region. The company also produces copper, zinc, lead, and silver, with its portfolio of assets, prospects and talent anchored in favourable mining jurisdictions in Africa, Australia, Latin America and Caribbean, North America and Papua New Guinea.