SGH’s EBIT of $843 million was up 10 per cent, with Boral’s EBIT of $259m up 29 per cent, helping drive the growth in this area.
SGH managing director and chief executive officer Ryan Stokes spoke about Boral’s performance in the first-half results.
“SGH completed the acquisition of Boral early in the half, and I am particularly pleased with their continued progress on the performance journey to achieve mid-teen EBIT margins,” he said.
“We remain excited about the opportunities we have long identified for further improvement at Boral. We also welcomed a significant number of former Boral shareholders to continue participating in long-term value creation as SGH shareholders.
Boral’s revenue of $1.8 billion was marginally down for the first half partially because of lower sales volumes in residential construction and roading.
SGH identified Boral’s cost control, and “internal optimisation” were “instrumental” in delivering the EBIT increase and managing the variable market conditions.
Boral has started an investment programme to refresh its heavy mobile equipment fleet, it expects this to support production and reduce cost efficiencies.
SGH stated the robust infrastructure investment outlook, and a positive residential outlook supported by the National Housing Accord targets supported its outlook for Boral.
“We continue to see solid customer demand across our core sector exposures of Industrials and Energy. The outlook for these sectors, along with our strong HY25 result, gives us confidence in our full-year earnings guidance of high single-digit EBIT growth for FY25,” Stokes said.
“Together with the leaders of our exceptional businesses, our owner’s mindset underpins the productivity and performance improvement that enabled this strong result.
“I am also grateful for the efforts of the wider SGH team and their commitment to serving our customers and delivering outcomes.”
The XPE1215 mobile jaw crusher is built to withstand tough mining conditions. Image: XCMG
XCMG’s new XPE1215 mobile jaw crusher is poised to change the game in crushing and screening.
When it comes to mining and construction machinery, XCMG is a name synonymous with innovation, durability, and excellence.
Leading the charge in the Australian market, XCMG has proudly introduced the XPE1215 mobile jaw crusher, a game-changer in the world of crushing and screening.
Designed for efficiency, reliability, and unmatched performance, the XPE1215 is here to redefine industry standards.
Built for power and precision
At its core, the XPE1215 is engineered to handle the toughest of tasks.
The XPE1215 mobile jaw crusher reduces energy consumption without compromising productivity. Image: XCMG
With its impressive jaw capacity, this mobile crusher is equipped to handle large-scale operations, processing substantial volumes of material with ease.
Whether it’s mining, construction debris, or quarrying, the XPE1215 tackles the job head-on, ensuring maximum productivity on every project.
Key specifications:
Jaw size: Optimised for high-capacity throughput, reducing downtime and increasing efficiency
Motor power: Enhanced motor systems ensure smooth operation, even under heavy load conditions
Mobility: Designed for rapid deployment and ease of transport, this crusher adapts seamlessly to diverse terrains and work sites.
Why the XPE1215 leads the pack
The XPE1215 isn’t just another mobile jaw crusher; it’s a class apart. Here’s why the XPE1215 is a premium option:
Innovative design: Incorporating advanced engineering, the XPE1215 boasts a user-friendly interface, making operations straightforward and efficient. Maintenance has never been easier, thanks to its accessible design and quick-service capabilities.
Energy efficiency: Sustainability is at the heart of XCMG’s innovations. The XPE1215 reduces energy consumption without compromising performance, helping operators achieve cost savings and meet environmental goals.
Durability under pressure: Built with high-quality materials, this crusher is made to withstand Australia’s harshest conditions. From searing heat to rugged terrains, the XPE1215 remains reliable, ensuring years of dependable service.
Precision and consistency: The crusher’s advanced jaw technology delivers uniform particle sizes, enhancing the quality of the output.
XCMG in 2025
While the XPE1215 takes centre stage, there’s much more to come from XCMG.
XCMG is gearing up to redefine the crushing and screening industry, with an expanded lineup of advanced machinery set to debut in 2025.
These forthcoming innovations are not only tailored to meet the specific demands of the Australian mining and construction landscape but are also engineered with global best practices in mind, ensuring they deliver superior performance, durability, and efficiency.
XCMG’s commitment to innovation means these new models will incorporate advanced automation, improved energy efficiency, and enhanced material handling capabilities to support operations of all sizes.
Whether tackling challenging terrain or increased throughput in high-demand environments, XCMG’s 2025 lineup promises to push boundaries and set new benchmarks in crushing and screening technology.
Crushing it with XCMG
The XCMG XPE1215 mobile jaw crusher is not just a piece of equipment – it’s a statement. It’s a declaration that XCMG is here to push the boundaries of what’s possible in mining and construction machinery.
As the industry look towards 2025, XCMG’s commitment to excellence ensures the future of crushing and screening is brighter than ever.
Coates has developed a guide to understanding the trends, challenges and opportunities that will shape the construction industry in 2025.
The Australian Construction Industry Forum predicts just 0.9 per cent growth in the construction industry for the year ahead, reflecting slowing economic conditions, cost and inflationary pressure, and continued challenges around the availability of skilled labour.
“Ultimately, 2025 will see a shift in several key trends that shape construction. Critically, we are seeing a compositional shift in investment focus, creating new challenges and opportunities across the industry,” says James Lawrence, group manager – customer and markets at Coates.
This industry outlook explores some of the trends that will define the year ahead and highlights how the rental industry can ease pressure on construction businesses as they navigate the changing landscape.
Growth in engineering construction
Despite slight deceleration in building construction, demand remains strong in engineering construction as the industry moves into a utilities-driven cycle. Investment in large-scale renewable energy infrastructure will drive demand for accommodation, amenities and regional development to support these major projects.
“As the engineering construction boom for long road and rail infrastructure nears its peak, the next phase of growth in renewables, utilities and resources is ramping up,” says Lawrence.
“The push towards net zero is driving a surge in energy transition investment, with large-scale renewable energy generation, transmission and storage projects being constructed across the country.
“With equipment, solutions and expertise that align with the growing activity in these sectors, Coates is well-placed to support construction businesses in exploiting these opportunities. This shift will be a core strength for Coates and its customers in 2025.”
Key takeaways:
With a forecasted six-fold increase in renewable energy construction over the next five years, utilities will become the biggest sector of the Australian engineering construction market, according to Oxford Economics Australia’s Engineering construction in Australia – Q4 2024 update.
This growth is shaping state-based demand, with particularly strong growth forecast for Queensland and Western Australia over the next five years.
Bolstered by a mining rebound, economists also predict that WA will surpass New South Wales to become the largest state for engineering construction activity by the end of the decade, according to Oxford Economics Australia’s Engineering construction in Australia – Q4 2024 update.
Shifting building activity
The commercial and industrial building sectors will experience a decline in growth in 2025. The residential construction sector will also see a slowdown, with Australia’s population-driven housing boom yet to arrive.
“Lingering sentiment in the Australian economy is causing some stagnation to remain, particularly around private investment in building construction. Once this sentiment lifts, the market will start to grow again,” says Lawrence. “Declining activity in these construction markets is expected to be offset by growth in the health, utilities and institutional sectors, including defence projects.”
Changing project geography
A shift in major project location from metro to regional areas is another trend currently shaping the construction industry.
“During the decade-long transport infrastructure boom, Coates supported many of the country’s largest metro-based capital works projects, including Metronet in WA; West Gate Tunnel in Victoria; and the M7-M12 integration in NSW,” says Lawrence. “As focus shifts towards building large-scale renewable energy infrastructure, we are supporting a growing number of projects in regional and remote locations across the country.”
Workforce challenges
Labour shortages will continue to challenge construction businesses in 2025, exacerbated by historically slow productivity gains.
“Coates is focused on helping customers to improve productivity and efficiency,” says Lawrence. “Our turnkey solutions can ease workforce pressures and help customers to transfer some of the risk.”
How can equipment rental support the construction industry amid challenges?
“While the sharp spike in construction material prices has moderated, costs remain high due to tight infrastructure market capacity, increased public debt, and challenges related to the cost of living and wages,” says Lawrence. “Hiring equipment presents a strategic solution for businesses looking to reduce capex, manage costs, and scale up or down quickly as needed.”
Reducing capex, improving cash flow
With rising construction costs, it’s often more cost-effective for businesses to allocate capital to renting instead of purchasing construction equipment.
“By hiring equipment, customers avoid having to make loan repayments or front the full cost of purchased equipment,” says Lawrence. “This approach also creates a more predictable and manageable cost structure to support accelerated decision-making.”
Additional benefits of hiring construction equipment include:
Mitigating the risk and liability of owned assets
Shifting the cost and responsibility for maintenance, servicing and insurance to the hire company
Avoiding the depreciation of owned assets
Preventing the cost and inconvenience of reselling and/or replacing end-of-life equipment
Circularity and emissions reduction
To deliver major projects, businesses must be able to meet the growing sustainability provisions in construction contracts. Among a wide range of considerations, in 2025 there will be greater focus on circular construction practices and reducing Scope 3 emissions – the indirect greenhouse gas emissions (GHG) that occur in a company’s value chain.
“Choosing to hire construction equipment is inherently circular, as the equipment is deployed to multiple projects throughout its lifecycle, improving efficiency and utilisation,” says Lawrence. “Hire equipment also gives customers access to the latest technology and innovation to improve utilisation, inform hire choices and work more sustainably and efficiently.”
Coates is uniquely placed to support customers in reducing their GHG emissions with its Greener Choices range of battery electric, hybrid, solar, low-pollutant engines and biofuel-compatible equipment across categories including access, materials handling and lighting.
“Lighting is a key category on the way to decarbonisation, together with increasing hybridisation of power generation with multiple benefits, including reduced noise and particulate pollution,” says Lawrence. “We are also tackling temporary site accommodation, typically one of the highest energy users on project sites, with a range of more energy-efficient solutions, augmented by renewables and hybrid power sources.”
With one of Australia’s largest fleets, a national branch network and a deep understanding of what it takes to support the delivery of major projects nationwide, Coates looks forward to supporting customers as they navigate 2025.
For support and advice, reach out to Coates today.
A New crushing and screening plant at Agnew Gold is delivering financial rewards to Gold Fields. Image: Sandvik
A new Sandvik crushing and screening plant at Gold Fields’ Agnew gold mine in WA is delivering greater efficiency, throughput and operational safety.
Gold Fields Limited is one of the world’s largest gold mining companies with nine operating mines, located in Australia, South Africa, Ghana, Peru and Chile.
The Agnew gold mine is one of four Australian gold mines operated by Gold Fields. The site is situated approximately 375km north of Kalgoorlie and has a long history of gold production dating back to the late 1970s.
The mine is best known for its underground operations, primarily targeting the Agnew and Lawler gold deposits. Ore is extracted using a combination of underground and surface mining and is then processed on-site.
Around 2018, with the mine expanding into a third underground source, there was a need to increase plant throughput. The 21-year-old tertiary crushing circuit, which was suffering from poor reliability, was unable to meet the demand.
Gold Fields metallurgy manager Reg Radford is the company’s technical expert in the field of processing metallurgy. He works with process managers across all Gold Fields sites in Australia to assist in optimising operations.
Radford could see that the crushing and screening circuit was not in keeping with the company’s broader standards.
“It was working to its limits, and if you compared it to other Gold Fields sites, it was not to the standard that would be accepted elsewhere,” he said. “It didn’t meet our criterion for a well-organised, safe, professional gold processing operation.
“The equipment was old, and there was little or no spare parts availability. From a metallurgical perspective, it was being pushed to its limits to deliver the tonnage required. At best it was giving us an 8–10mm output, which was putting pressure on the downstream grinding circuit.”
The age and complexity of the existing plant also meant that access for operation and maintenance was difficult, presenting potential safety concerns.
Seeking a complete solution
The existing crushers were reaching end-of-life, and rather than just replacing them, it was decided to build an entirely new crushing and screening circuit.
To do this, and address various other concerns regarding the existing plant, a comprehensive upgrade project, known as the Agnew Stage 1 upgrade, was conceived.
The initiative examined bespoke and modular designs that could replace the existing plant. The project aimed to improve site water drainage and dust management (by installing a fine ore bin) while minimising disruptions during construction and commissioning.
Gold Fields manager – processing Tristan Freemantle was appointed as project director for the upgrade at Agnew. A veteran of the gold and copper industry, Freemantle originally worked for Barrick Gold and then transferred to Gold Fields around 12 years ago.
Since then, he has worked across several of Gold Fields’ Australian sites and is currently based at Gruyere, a joint venture project with Gold Road Resources in the Yilgarn area of WA.
“Agnew’s mine life had been extended for a further eight years, so upgrading the crushing and screening circuit was important to increase our processing capabilities: we needed to be in a position to process more ore from the new third mine coming online,” Freemantle said.
Gold Fields has enjoyed a longstanding relationship with Sandvik, with the company having Sandvik crushers installed at both their St Ives and Granny Smith operations. After considering a bespoke solution, the Gold Fields team chose to go with a Sandvik modular plant.
“We needed a circuit that was simple, low maintenance and reliable, but also wanted the best crushers and screens that we could get,” Freemantle said.
“Sandvik showed a willingness to work with us within our parameters. Initially, it was just the crushers and screens, but in the end, they presented a complete plant design, which was modular and comparable with the bespoke designs we were considering.
“Sandvik was also able to accommodate our desire to manage our own electrical and process control design.”
A key to the successful implementation was Sandvik’s expertise in crushing and modular plant design combined with the screening know-how of Schenck Process.
The scope of supply included a Sandvik reciprocating plate feeder, grizzly screen, jaw crusher, and two cone crushers, as well as a Schenck Process double-deck banana screen fitted with Screenex screening media. Sandvik also provided bins, chute work, associated wear protection, and conveyors.
Sandvik 800i series cone crushers perform secondary and tertiary crushing functions at Agnew. Image: Sandvik
The innovative plant design eliminated the need for two screening stations and associated conveyors when compared with other proposed designs.
“Having a single vendor was an advantage,” Radford said. “Sandvik’s initial designs and 3D models were quite detailed and comprehensive, which was encouraging. It gave us confidence in the circuit because we knew exactly how the proposed layout would interact with the existing plant.”
Changeover challenges
A significant challenge for the project team was that Gold Fields needed the new plant to be installed in parallel with the old one so that, ideally, there would be zero downtime.
“Agnew can’t afford to be down for two or three weeks,” Radford said. “The mill is pushed to its limits, so it has little ability to catch up.
“Solving this problem – where we could build the new circuit and how to tie it in – was a good part of the success story. Commissioning on-time and within budget, with limited downtime, was a very important part of the brief.”
To accommodate this requirement, the team decided to move the run-of-mine (ROM) pad and build the new circuit on the site of the old ROM pad. While this achieved the brief of zero downtime, it introduced a new challenge.
The geology of the ROM pad was untested, and some contractors argued that a substantial concrete foundation would be required to support the crushing and screening plant, greatly increasing both the build time and cost.
In the end, working with Gold Fields geotech consultants, Sandvik’s design team resolved this problem by delivering a support structure for the new circuit that was strong and rigid enough to reduce the concrete foundations required.
Metso is expanding its screening solutions in China. The initial investment includes an agreement to acquire Selm (Beijing) Technology Company, a privately owned company’s screening business, operations, and key assets.
By combining the new offering with Metso’s expertise in screening equipment, media, repairs, and services, Metso can strengthen its services to better support mining and aggregates customers in China.
“The acquisition is a significant step in advancing our regional strategy in screening of being closer to our customers, fostering a market-focused approach. We are excited to enhance our role in China as a leading provider of screening solutions for large projects like super quarries. We warmly welcome new colleagues to contribute to our growth targets and improved customer service,” says Jouni Mähönen, Vice President, Screening, Metso.
“Selm is a respected company with its products and services well recognized by the customers in both mining and aggregates industries. The acquisition will further enrich Metso’s product portfolio and strengthen our competitiveness and market position. This move will enable us to provide comprehensive screening solutions in China, where Metso has a strong customer base and service capability in both the mining and aggregates industries,” says Xiaofeng Liang, President of Great China market area, Metso.
The acquisition is subject to conditions precedent and expected to close during the second quarter of 2025. The parties have agreed not to disclose the transaction value, which has no material impact on Metso’s financials.
Selm (Beijing) Technology Company is a Chinese manufacturer of mining and aggregate screens and technologies, including micro-sizing screening solutions. The company has around 180 employees and its operations are in Shenyang, Northeast China.
Huifeng Tang, founder of Selm says: “We have been developing our screening business over the past years, building expertise and strong reputation among customers. Moving forward, the screen offering will bring benefits for customers as part of Metso and our employees will get a valued new employer.”
Metso’s screening solutions for aggregates and mining customers consists of banana screens, horizontal screens, inclined screens, mobile screens, portable screens, ultrafine screens as well as screening media, and capital screen related parts, repairs and services.
A Warman MCR 760 installed at a copper mine in Chile. Image: Weir
Weir will supply its Warman slurry pumps and Cavex hydrocyclones to Teck’s Highland Valley copper (HVC) mine in Canada in a new contract award.
Teck is completing its HVC mine life extension (MLE) project, aiming to extend the mine’s operational life through enhancing site infrastructure. The project is expected to yield around 1.95 million tonnes of additional copper over its lifespan.
The Warman MCR 760 pump is a cornerstone of the project, holding the title of the largest mill circuit pump in North America.
Designed to maximise wear life in arduous mill duties and facilitate easy and safe maintenance, the Warman MCR 760 pump addresses the global trend of declining ore grades that require increased throughput for economical mineral recovery.
Weir will also supply its Cavex 800CVX and 650CVX hydrocyclones for the MLE project. The solution was chosen thanks to its consistently high classification efficiency, capacity and low maintenance requirements.
A Warman MCR 760 slurry pump. Image: Weir
“Weir has a proven track record of supplying and supporting the largest, highest capacity mill pumps on the market,” Weir divisional senior product manager, pumps Quinton Sutherland said.
“Designing, manufacturing, and supporting pumps of this scale presents unique technical and engineering challenges, which is why Weir’s team of experts, drawing on decades of experience supporting customers across the globe, are the best choice when deciding who to trust with the most critical mill circuit operations.”
Weir director, capital sales North America Phil Blondin said the company priorities being close to its customers, wherever they are in the world.
“We have a service centre in Kamloops – a close drive to HVC – and a local team that can provide service and maintenance support, as well as an inventory program that encompasses the lifecycle of the products we supply,” Blondin said.
“This is the first mill pump this large in North America and, while Weir has manufactured and installed pumps this size in other parts of the world, we recognise that having a service network to support customers at every stage of the project is an essential part of what we’re offering.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
Following a strong bid from the South Australian Government and key mining stakeholders, the Asia-Pacific International Mining Exhibition (AIMEX) will be moving to Adelaide in 2025.
The agreement will see AIMEX call Adelaide home for the next 10 years, strengthening South Australia as Asia-Pacific’s fastest growing modern mining market.
AIMEX was acquired by Prime Creative Media in May 2024. As Australia’s longest running mining show, AIMEX has a history of supporting the latest trends and developments in the industry.
This move to South Australia represents the next phase in the regional resources sector, with the state leading the charge in responsible exploration to unlock minerals. It has also been driving the investigation of solutions for decarbonised steelmaking, efforts that are critical to the future of infrastructure development.
“We’re working to keep AIMEX’s reputation as a key event for the Asia-Pacific region,” Prime Creative Media general manager of events Siobhan Rocks said.
“We knew we needed to do something big to attract key players in the industry. When the mining industry asked us to come to Adelaide, we thought this change of location was the best way to serve this important sector.”
South Australian Premier Peter Malinauskas said with South Australia’s natural advantages and ingenuity, the state has the potential to lead the world in decarbonisation of critical minerals, including green steel and copper.
“We have a compelling story to tell, and AIMEX being hosted in Adelaide for the next decade provides a strong platform to do just that,” Malinauskas said.
“This exhibition will attract thousands of mining delegates from around Australia and the world to Adelaide every two years, delivering a significant boost to South Australia’s visitor economy.”
Business Events Adelaide chief executive officer (CEO) Damien Kitto said AIMEX is a significant win for Adelaide, one which will generate more than $250 million for the South Australian economy over the next 10 years.
“We are proud to be entrusted with this long running business event, and it demonstrates that Adelaide is increasingly being viewed as a modern powerhouse in sustainable energy generation,” Kitto said.
“Business Events Adelaide shares Prime Creative Media’s ambition of making AIMEX the world’s largest mining event.”
The South Australian mining industry is rapidly making a name for itself as a top-tier jurisdiction for the critical minerals essential to the world’s energy transition, including copper, uranium, zircon and zinc.
With its extensive renewable energy network and significant investment in hydrogen projects to power green steel and future energy solutions, South Australia’s pioneering objectives distinguishes itself from other markets.
Prime Creative Media CEO John Murphy said that with these significant developments and growth of the South Australia resources industry, and the ramp-up in decarbonisation and sustainable supply chains, relocating the event to South Australia was an obvious strategic choice.
“This is a critical time for the industry and South Australia is emerging as a frontrunner in responsible mining and production of the minerals, metals and fuels of the future,” Murphy said. “It aligns with our purpose to deliver a forward-focused mining event for the next generation of Australian mining.
“There’s no denying that there’s a link between the mining industry and renewable energy. South Australia is a world leader in renewables and the global transformation economy and we’re proud to partner with the state to showcase the world-class change the resources sector is driving.”
AIMEX offers delegates an opportunity to gain forward insights from internationally-renowned industry experts. The show offers unparalleled opportunities to connect with Australia’s largest community of mining suppliers and professionals in an environment that stimulates innovation and collaboration.
To get involved in the 2025 Asia-Pacific International Mining Exhibition, visit the AIMEX website or submit your enquiry below.
The Bald Hill lithium mine in WA. Image: Mineral Resources
Mineral Resources (MinRes) will transition its Bald Hill lithium mine in Western Australia into care and maintenance amid cyclically low lithium prices.
The major miner acquired Bald Hill for $260 million in late 2023 to ensure the operation’s profits stay in Australia.
MinRes will now transition the operation into care and maintenance to preserve the mine’s cash and the spodumene orebody’s value for when global lithium market conditions improve.
During care and maintenance, MinRes will continue to optimise mine plans, scale and operating structure ahead of any future restart.
The company will cease Bald Hill’s mining and mobile maintenance operations on November 13 and will temporarily cease operations at the spodumene concentrate plant and accommodation village by early December.
The final spodumene concentrate shipment from the mine is also expected to be sold in December.
Approximately 300 employees will be impacted by the transition, with all Bald Hill employees to be prioritised for redeployment across MinRes’ other WA operations. Where redeployment opportunities cannot be found, a redundancy process will be followed.
A team of about 10 MinRes employees will remain on site at Bald Hill to manage the scaling down of lithium production, as well as care and maintenance activities.
“Bald Hill is a significant value opportunity for MinRes once conditions in the lithium market improve,” MinRes managing director Chris Ellison said.
“Placing Bald Hill on care and maintenance is a prudent decision but one not made lightly. The decision aligns with the work we have done across the company in recent months to reduce costs.”
Despite the temporary shutdown, MinRes has increased Bald Hill’s mineral resource by 168 per cent. The mineral resource now stands at 58.1 million tonnes at 0.94 per cent lithium oxide.
“The significant upgrade to the mineral resources statement is evidence that Bald Hill is a high-quality asset with a long-term future,” Ellison said.
“We will continue to monitor lithium prices and site operating costs with a view to recommencing operations once conditions improve.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
Porter Group has been appointed as the official distributor for Sandvik crushing equipment in New Zealand.
As a new distributor, Porter Group will lead the sales and service of Sandvik’s range of crushers and provide aftermarket care to customers consisting of spare parts and local service support.
Porter Group chief operating officer Darren Ralph said the company is thrilled to be working with Sandvik.
“Two iconic brands in New Zealand, the Porter Group and Sandvik form a formidable partnership to further enhance the product offering and service provided to New Zealand’s extraction and recycling industries,” he said.
“We look forward to making significant progress with the product range and assisting our valued customer base with their requirements in this area.”
Sandvik Rock Processing Solutions vice president original equipment for Oceania Amit Parimoo said the partnership with Porter Group aligns with Sandvik’s strategy to enhance customer focus.
“Together with Porter Group, we will drive greater efficiencies for New Zealand’s mining and aggregates sectors by combining world-class technology with trusted, local service,” Parimoo said.
“Our shared goal is to help customers achieve maximum productivity while lowering their environmental impact.”
Both Sandvik and Porter Group are excited to provide strong products and support, from initial sales to ongoing maintenance and technical assistance.
The partnership highlights Sandvik’s commitment to delivering premium solutions with local support, giving customers the best of both worlds – global innovation and local expertise.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
Newmont has entered into a definitive agreement to sell its Akyem gold mine in Ghana to Zijin Mining Group for up to $US1 billion ($1.5 billion).
This deal marks a significant step in Newmont’s strategy to focus on its Tier 1 assets, which are expected to drive long-term growth and shareholder value.
The transaction includes a cash consideration of $US900 million upon closing, with an additional $US100 million contingent on certain conditions being met.
Proceeds from the sale will be used to bolster Newmont’s balance sheet and return capital to shareholders.
“The sale of Akyem represents continued progress on the non-core asset divestiture program announced in February, supporting our focus on the Tier 1 assets in Newmont’s portfolio that will drive sustainable growth and the return of capital to shareholders,” Newmont’s president and chief executive officer Tom Palmer said.
“We believe the proposed transaction results in the greatest overall value for Newmont shareholders and is the best strategic fit for Akyem.
“We are confident that Akyem will continue to thrive under new ownership with long-term benefits for local stakeholders and surrounding communities.”
Palmer said the successful completion of this transaction will strengthen Ghana as a favourable mining jurisdiction, with Newmont committed to supporting the growth and development of the region which includes the development of Ahafo North.
“In line with President Afuko-Addo’s address in February, we ensured that our robust divestment process provided equal opportunity for all potential buyers, Ghanaian and international, to participate,” Newmont managing director for Africa Rahman Amoadu said.
“Additionally, we have included the minerals income investment fund (MIIF) in the process in preparation of their potential investment in Akyem to further Ghanaian interest in the mine.”
The transaction is expected to close in the fourth quarter of 2024, pending regulatory approvals.
With the Akyem divestment, Newmont does not anticipate a material impact on its 2024 outlook and remains committed to its investments in Ghana, including between $950 million–1.05 billion in development capital for Ahafo North.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
