Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Newmont Corp. has kicked off the sale of its Akyem gold mine in Ghana, which is attracting interest from potential bidders including Chinese producers amid soaring prices for the metal, people with knowledge of the matter said.
Newmont is working with Citigroup Inc. on the disposal and they have started sounding out prospective suitors, according to the people. Shandong Gold Mining Co. and Zijin Mining Group Co. are among companies showing early interest in the asset, the people said, asking not to be identified because the information is private.
Chifeng Jilong Gold Mining Co. is also studying Akyem, said the people. Australian miner Perseus Mining Ltd. said last month it would consider the asset as well.
Deliberations are at an early stage and suitors could decide not to proceed with bids, the people said. Representatives for Newmont, Citigroup, Shandong Gold and Zijin declined to comment. A spokesperson for Chifeng Jilong didn’t reply to a request for comment.
The sale of Akyem is part of Denver-based Newmont’s effort to raise $2 billion in cash through divestitures in the wake of its acquisition of Newcrest Mining Ltd. in November. On top of Akyem, Newmont wants to sell four gold mines in North America and one in Australia.
Akyem produced 420,000 ounces of gold a year at the end of 2022, the company’s website shows. The precious metal surged above $2,200 an ounce this week for the first time and it has rallied about 10% in a month.
(By Vinicy Chan)
Comments