Zijin & Barrick Expand Gold Interests in Ghana & DRC

Zijin Mining acquires Newmont Ghana gold asset

China's multinational mining company Zijin Mining Group is to purchase the Akyem gold mine in Ghana from Newmont Corporation for US$1bn. US-based gold producer Newmont announced the sale as part of its asset optimisation strategy.

The deal involves Zijin's subsidiary, Gold Source International, acquiring a Newmont subsidiary which owns the Akyem project. 

Chen Jinghe, Chairman of Zijin Mining Group, told Reuters: "Our analysis indicates significant potential in the project's resources and reserves under current and projected gold price conditions."

The transaction awaits regulatory approvals, with completion expected in Q4 2024. Zijin Mining has indicated openness to potential minority stake sales to Ghanaian entities who have expressed interest.

Barrick Gold Reports new DRC gold discovery

Canadian mining company Barrick Gold Corporation has identified new gold deposits near its Kibali operation in the Democratic Republic of Congo (DRC). 

The discovery location, known as the ARK target, sits four kilometres from existing processing facilities, Reuters reports.

Mark Bristow, Barrick Gold's CEO, said: "These discoveries could yield a substantial orebody and extend Kibali's operational lifespan."

The Kibali mine, which initiated production in 2013, is a joint venture between Barrick Gold (45%), AngloGold Ashanti (45%) and Société Miniére de KiloMoto (10%).

Barrick has invested US$2.87bn in the operation, including local procurement initiatives. The mine utilises renewable energy, with plans to increase from 79% to 85% penetration upon completion of a new solar installation.

The operation maintains environmental commitments, including wildlife conservation efforts in partnership with Garamba National Park. Bristow added: "Our commitment extends beyond mining to environmental stewardship and community development."

Gold ETF Holdings rise, says World Gold Council

Global gold exchange-traded funds (ETFs), investment vehicles that hold physical gold bullion for investors, recorded inflows for the fifth consecutive month in September, according to data from the World Gold Council (WGC).

The WGC, an organisation representing gold mining companies globally, reported additions of 18.4 metric tonnes to ETF holdings, equivalent to US$1.4bn. This brought total holdings to 3,200 tonnes.

Trading volumes in the gold market increased by 7% month-on-month to US$259bn per day. The over-the-counter market, where trades occur directly between parties rather than through exchanges, saw a 10% volume increase to US$176bn.

Speculators on COMEX, the primary futures and options market for metals, increased their net long positions by 6% to 976 tonnes. John Reade, Chief Market Strategist at the World Gold Council, noted: "The combination of price appreciation and continued inflows has pushed assets under management to US$270.9bn."

Gold price surge impacts Indian festival demand

The gold price increase to unprecedented levels has affected the Indian bullion market's festival season outlook, despite recent import duty reductions by the Indian government, Reuters reports.

The India Bullion and Jewellers Association (IBJA), which represents the country's jewellery trade, reports a shift in consumer behaviour. 

Prithviraj Kothari, IBJA President, said: "Volume demand might decrease by 20% compared to typical festival periods."

The Indian government had reduced import duties to the lowest level in ten years, aiming to stimulate demand in the world's second-largest gold market after China.

PN Gadgil and Sons, a prominent jewellery retailer based in Pune, has observed changes in purchasing patterns. CEO Amit Modak told Reuters: "Our customers are selecting lighter pieces to accommodate their budgets as gold prices have risen by over 25% since last year's festival season."