(Ecofin Agency) – Mali wants to apply the 2023 mining code to existing gold mines, while recovering from their owners a shortfall of 300 to 600 billion FCFA revealed by a recent audit. The British Hummingbird operates the Yanfolila mine in the country which delivered 84,000 ounces in 2023.
In Mali, the British Hummingbird Resources is close to an agreement with local authorities concerning the application of the mining code adopted in 2023, to its Yanfolila gold mine. This is what theEcofin Agency, on Wednesday, November 13, during an online discussion between company management and investors.
« We engaged openly and transparently with the government, maintaining a positive working relationship and obviously discussing how the government wanted to incorporate certain elements of the new mining code into all mining conventions. These discussions have progressed and we hope to reach an agreement shortly“, declared financial director Tom Hill, in response to a question from the editorial staff.
For months, Bamako has been seeking to recover a shortfall estimated between 300 and 600 billion FCFA ($482.6 million to $965.1 million) from companies, while negotiating the application of the terms of the new mining code. to their operations. These include increasing the government's participation in mines to 30%, compared to the current 20%, while introducing a 5% participation for local investors, or 35% in total for the country.
It is in this sense that agreements have already been signed with the Canadian B2Gold, Allied Gold and Robex Resources.
These three companies have combined gold production in Mali of more than 800,000 ounces in 2023, including 590,243 ounces only for B2Gold. Hummingbird's contribution is more modest, as Yanfolila delivered 83,965 ounces last year.
Note that the negotiations between Mali and Hummingbird could soon directly involve the Burkinabé businessman Idrissa Nassa who is the majority shareholder of the company through his holding company Coris Invest Group. This is in fact seeking to take complete control of Hummingbird. The acquisition project, which will see Hummingbird delisted from the London Stock Exchange in order to become an unlisted company, must nevertheless overcome several obstacles.
Emiliano Tossou
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07/11/2024 – With Coris Invest, Idrissa Nassa wants to acquire two gold mines in Mali and Guinea
