Newmont's plan to sell the Akyem gold mine in Ghana has stirred interest among potential buyers, including Chinese mining companies, amid the uptrend in gold prices.

Following Newmont's announcement of its intent to divest the mine, Australian miner Perseus Mining has also expressed interest in acquiring it. Newmont has enlisted Citigroup Inc. to oversee the sale process and has initiated discussions with prospective bidders.

Shandong Gold Mining Co. and Zijin Mining Group Co. are among the entities eyeing the asset, with Chifeng Jilong Gold Mining Co. also contemplating participation.

Negotiations are at an early stage, and interested parties may opt out of submitting bids. Newmont, Citigroup, Shandong Gold, and Zijin have refrained from commenting on the matter.

The divestment of Akyem forms part of Newmont's strategy to raise $2 billion through asset sales following its acquisition of Newcrest Mining Ltd. in November. Alongside Akyem, Newmont plans to offload four gold mines in North America and one in Australia.

Akyem mine, which produced 420,000 ounces of gold annually as of 2022, holds significant value amid the recent surge in gold prices, which recently breached $2,200 per ounce. Newmont aims to shed non-core assets and streamline its workforce to alleviate debt stemming from the Newcrest acquisition.

Despite divesting Akyem, Newmont remains committed to its Ghanaian operations. The company recently disbursed GH¢184.6 million in dividends to the government for its stake in the mine's operations and has lent support to the government's gold-buying initiative.

Perseus Mining, already operating the Edikan Mine in Ghana, sees the potential acquisition of Akyem as a chance to double its gold output. Newmont anticipates Akyem's production to reach 170,000 ounces in 2024, down from 295,000 ounces the previous year, while Ahafo South and Ahafo North mines will continue operations.

Newmont's CEO, Tom Palmer, emphasized that the divestiture stems from the assets not meeting the company's Tier-1 asset criteria.

Despite reporting a net loss attributable to impairment charges and reclamation costs, Newmont generated significant cash flow and dividends for shareholders in 2023.