(Ecofin Agency) - So far, the negotiations with companies owning gold mines in the country have yielded $783 million (CFA500 billion) for Mali. Hummingbird is among the latest to have reached an agreement with Bamako. The British firm is about to be acquired by Burkinabe businessman and owner of Coris Bank, Idrissa Nassa. 

On January 15, Hummingbird announced it would pay the Malian State about $16.4 million (CFA10 billion). The full payment is due by June 30, 2025. The British company also agreed to have its Yanfolila gold mine comply with the country’s new mining code, adopted in 2023.

Hummingbird will also forgo claims for VAT refunds totaling another CFA10 billion. To fund this, the company plans to work with its partner Coris Invest Group, which holds a majority stake through Nioko Resources. Burkinabe entrepreneur Idrissa Nassa owns both Coris Invest Group and Nioko Resources.

"This agreement represents a significant milestone in our relationship with the Government of Mali and provides a stable framework for our continued operation and development of the Yanfolila Gold Mine. Through constructive dialogue with the Government, we have addressed historical matters while securing important operational agreements that support our long-term investment in the country,” stated Geoff Eyre, Interim CEO of Hummingbird.

By conceding, Hummingbird hopes to settle a dispute with Bamako which broke out after Malian authorities announced plans to recover between CFA300 and CFA600 billion from gold producers active in the country. Mali disclosed its intention after a 2023 audit found various issues with the payment of mining revenues owed to the State. According to Finance Minister Alousséni Sanou, Mali had recovered about $783 million (CFA500 billion) by the end of December 2024.

In return for its concessions, Hummingbird has received a commitment from the Malian government to renew its exploration licenses and approve an extension of its current operating license. This will support the firm’s development plans in Mali.

Besides enabling Hummingbird to continue operations in the country, the deal should facilitate its acquisition by Nioko Resources which wants to buy all of Hummingbird's shares, and consequently take over Hummingbird’s Yanfolila and Kouroussa gold mines in Guinea. 

On January 13, 2025, Hummingbird issued a note stating that Nioko Resources now owns 71.8% of its shares. The same note revealed Nioko Ressources’ intention to delist the British from the London Stock Exchange once the sale was through.

This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho