The move forms part of an ongoing programme to divest non-core assets as Newmont makes a strategic shift to focus on its Tier 1 assets.

Under the terms of the agreement, Newmont is expected to receive cash consideration of $900 million upon closing and a further $100 million is expected to be received upon the satisfaction of certain conditions.

Proceeds from the transaction will support the Company’s capital allocation priorities, including strengthening the balance sheet and returning capital to shareholders.

In a statement, Newmont explained that the transaction is expected to close in the fourth quarter of 2024, contingent on satisfaction of customary conditions precedent, including regulatory approvals.

As a result, the transaction is not expected to have a material impact on Newmont’s 2024 outlook and the Company has not adjusted its non-core guidance for the year.

Newmont’s President and Chief Executive Officer, Tom Palmer, is confident that the Akyem operations will continue to thrive under new ownership with long-term benefits for local stakeholders and surrounding communities.

The company has pledged commitment to Ghana, including the investment of $950 million to $1,050 million of development capital in the Ahafo North gold mining project in the Ahafo region of Ghana.

Read the full statement below:

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• Tutuka residents protest against Newmont over resettlement

• Asantehene settles dispute between chiefs and Newmont

The suspension comes after the intervention of the Ministry of Lands and Natural Resources regarding unpaid resettlement money.

The residents had been picketing for three days to demand payment of resettlement funds amounting to GHS 21 million from the gold mining company.

The intervention by the Ministry, alongside local chiefs, the Ahafo Regional Minister, and the Asutifi North District Chief Executive, has brought a temporary halt to the protest.

The Saamanhene of Kenyasi No. 1, Nana Anim Dankwah, addressed the picketers on behalf of the Ministry and local authorities.

He announced that following a closed-door meeting with the Deputy Minister for Lands and Natural Resources and Newmont’s management in Accra, the Ministry has committed to engaging with the company’s managers in Denver, USA, within a week to ensure the payment is made to the affected residents.

Nana Anim Dankwah assured the residents that the chiefs would exert all possible pressure on Newmont to secure the payment, urging them to remain calm and await a positive outcome from the Ministry’s efforts.

In an interview with Adom News, one of the leaders of the aggrieved residents, Nana Kwabena Amoateng, confirmed the suspension of the protest.

He warned, however, that if Newmont fails to provide a satisfactory response within the promised timeframe, the residents will resume their picketing.

Amoateng also revealed that, the Ahafo Regional Coordinating Council has assured them of reimbursing the expenses incurred during the protest.

According to community leaders, Johnson Owusu Prempeh and Nana Kwabena Amoateng, Newmont had committed to paying resettlement monies as agreed upon with the EPA and local chiefs.

However, the company has yet to fulfill this promise, prompting residents to continue their protest until they receive the owed payments.

Tensions escalated as Police used tear gas to disperse the crowd, causing one of the protestors to collapse.

In response, Emmanuel Ato Aubeng, the Community Relations Manager for Newmont Ahafo South Mines, appealed to the residents to cease their picketing.

He assured them that all involved parties would be meeting in Accra during the week to resolve the issue.

However, the hundreds of protestors have refused to stand down, insisting that picketing will continue until they receive substantial evidence of the payment.

They have set up kitchen wares and are cooking at the protest grounds, with many prepared to sleep at the venue.

Meanwhile, there is a heavy Police presence in the area to maintain calm.

Earning the description, “the food basket of Ghana”, the Region’s soil type and rainfall pattern support the cultivation of varied food and cash crops, with farmers engaged in both subsistence and commercial farming.

Part of the challenge, particularly with commercial agriculture production, is the lack of access to ready market and the inadequate value-addition avenues for perishable crops.

In 2013, Newmont, which operates the Ahafo mine in the Ahafo Region and the Akyem mine in the Eastern Region, established the Asutifi Processing and Services Centre (APSC) in collaboration with the German Development Cooperation on a pilot basis to explore processing and marketing opportunities for agricultural produce in the area.

This was after extensive engagements with the beneficiary farmers and assessments to understand the agriculture value chain in the region and the opportunities therein.

In line with Newmont’s social performance strategy, which aims to enhance opportunities for people in its host communities, particularly the youth and women, the APSC became a significant vehicle to support the livelihoods of the people and create sustainable jobs in the Ahafo Region.

The APSC is a key project under Newmont’s broader Local Economic Diversification (LED) initiative, which focuses on fostering partnerships with development agencies, government, and impact investors, to identify business opportunities, create employment, and promote sustainable development in the company’s host communities.

Enhanced Processing Facility

The facility, which started operating in 2013, encountered some challenges that impacted the realization of its full potential. These challenges included limited raw materials to feed the factory and ready markets for the products. 

Newmont then conducted extensive feasibility studies in 2018 to confirm the viability of a bigger facility with the requisite market demand for processed chilli pepper and ginger.

The outcome of the assessment justified Newmont’s significant investment to scale up the project and create job opportunities, especially for farmers in the area and those in the agriculture value chain.

In December 2023, the expanded processing and services centre was completed. The US$ 4 million APSC facility, established with support from the German Development Cooperation, marked a significant milestone in Newmont’s ongoing efforts to create value and improve lives of beneficiaries through sustainable and responsible mining.

With a bigger capacity and scope, the APSC is now expected to significantly reduce post-harvest losses and improve food security in the Asutifi area. Over 80 farmer-based organisations and about 1,000 chilli pepper and ginger farmers are benefiting from the APSC through an out-grower scheme, guaranteeing them increased and consistent income.

Newmont’s Commitment to sustainable mining in Ghana

Newmont, the world’s leading gold company and a producer of copper, silver, zinc, and lead, operates two mines in Ghana: The Ahafo South Mine in the Ahafo Region and the Akyem Mine in the Eastern Region.

The company’s Ahafo North project is a greenfield mine currently under construction in the Ahafo Region. 

In Ghana, Newmont remains one of Ghana’s largest taxpayers. By the end of September 2023, the company had made GHS 2.857 Billion in fiscal payments to the Government of Ghana.

Its development Foundations in Ahafo and Akyem continue support host community development.

During the launch, the MD for Newmont’s Africa business unit, David Thornton, highlighted the commitment of the company to improving incomes and livelihoods of local farmers.

He said, “the revamped APSC signifies Newmont’s dedication to fostering local economic growth, promoting sustainable development, and supporting agriculture value chains in the Ahafo Region, recognized as the breadbasket of Ghana.”

The team leader of Invest for Jobs at GIZ Ghana, John Duti, added that, “the German Development Cooperation is happy to partner Newmont on this project which has huge potential positive impact for the farmers, and address the issue of post-harvest losses, one of the key challenges in the agriculture sector.”

This amount is broken down into Corporate Tax of GHS 514.57 million; Minerals Royalties of GHS 197.06 million: GHS 78.23 as Pay As You Earn (PAYE); GHS 42.31 as Withholding Tax; and GHS 11.55 million as Forestry Levy.

“Fulfilling our obligations in terms of statutory payments, and being transparent about what we pay, are in line with our commitment to regulatory compliance and good corporate governance,” said David Thornton, Regional Senior Vice President, Newmont Africa Operations.

Newmont Africa’s operations in Ghana have a strong tax compliance history and received multiple taxpayer recognitions from the Ghana Revenue Authority.

“It is important, especially in these challenging times, for companies to honour their obligations to the state, as well to their various stakeholders, through direct payment of their taxes and investment in social programmes,” he added.

Apart from the taxes, royalties, and levies that go directly to the government towards the growth and stabilization of the economy, Newmont Africa also focuses on stimulating economic development in the local communities that host the mining operations, through a range of programs and projects that deliver measurable outcomes.

Acknowledging the key role that road infrastructure plays, particularly in farming communities, Newmont Africa’s operations in Akyem and Ahafo have both funded critical road infrastructure, working through the Ministry of Roads and Highways.

The mines’ investment in skills acquisition and sustainable livelihood programmes also ensure that local community residents are equipped with employable skills that are needed in the extractive and construction industries.

A joint search party, made up of the Police, Newmont’s Emergency Team, Protea Coin Ghana
(contracted security provider) and community volunteers conducted an extensive
search for the missing security officer over the past four days.

A hunter found him at midday on Sunday, 31st July in a neighbouring forest reserve where he had travelled to himself.

The man is assisting the police with their investigations of the disappearance while Newmont has arranged medical and psychological support for him.

On Wednesday, 27th July at about 6.30 pm, the security officer informed his colleague
about using the washroom. After over 45 minutes of not returning to his duty post, his
colleague reported his absence to the supervisors on duty.

The company notified the Minerals Commission which undertook an on-site fact-finding investigation. In collaboration with his community leaders, police, local government officials, family and community leaders, a joint search team was initiated to find the missing officer.

“I would like to thank the joint search team who worked tirelessly over the last 72 hours to
find the missing security officer,” said Samuel Eshun, Acting General Manager, Ahafo South
Mine.

“The safety and security of our workforce will continue to remain our priority. We will review
this incident thoroughly to ensure that the lessons are learnt to inform the further enhancement of our security protocols and procedures,” he said.

Newmont Africa has announced plans to build a new underground mine and expand processing capacity at its Ahafo operations by more than 50 percent.

According to the Regional Senior Vice President –Africa operations, Alwyn Pretorius, the expansion will extend sustainable and profitable production at Ahafo.

“We have secured the required environmental permits and resources to self-fund a new underground mine and mill expansion at Ahafo. The Subika Underground mine will produce 1.8 million ounces of gold over 11 years with ore grades of 4.7grams per tonne and also create a platform to support longer-term growth. The Mill expansion project will increase mill capacity by more than 50 percent to nearly 10 million tonnes per year by adding a crusher, grinding mill and leach tanks to the circuit,” Mr. Pretorius said.

The projects have been optimized to improve internal rates of return to more than 20 percent at a $1,200 gold price.

In the first five years of full production, from 2020 through 2024, the projects will add incremental gold production of 200,000 to 300,000 ounces of gold per year, for total annual production of between 550,000 and 650,000 ounces at Ahafo and lower cost applicable to sales (CAS) by $150 to $250 per ounce compared to 2016 for total CAS of $650 to $750 per ounce.

All-in sustaining cost (AISC) is expected to reduce by $250 to $350 per ounce compared to 2016 for total average AISC of $800 to $900 per ounce.

“The Subika Underground resource has been studied for 11 years and execution and technical risks are well understood. We expect to reach first production at the mine in the second half of 2017 and commercial production in the second half of 2018. We have held extensive consultations with our communities and stakeholders and will work towards meeting local hiring commitments,” Mr. Pretorius added.

Development capital of between $300 million and $380 million will be funded through free cash flow and available cash balances.

Newmont will uphold local hiring and procurement commitments and existing bargaining agreements through construction and operation.

Commercial production at Ahafo began in 2006 and the operation achieved five million ounces of gold production in October 2016.

Mr. Pretorius says construction of the two projects will not disrupt operations or the company’s ability to meet cost and production targets.

“We are excited about these projects and will advance them to create value for our shareholders, communities and all stakeholders,” he added.