Home|Why Liberia|About LNIC| Investment Opportunities| Doing Business| FAQs| Contacts
 
   
     
     
     
     
     
 
»INVEST
3 Paths to Investing
Accessing Incentives
Obtaining a Concession
Strategic Sector Opportunities
Acquiring Land
Business Registration
»GROW
Business Linkages
Accessing Finance
Business & Entrepreneurship
Development Services
»SUCCEED
Investor Protection
After Care Services
Success Stories
Reforms


Concessions in Liberia


Reports and Legislation
»PHOTO GALLERY
  Latest News »
 The Government of Liberia and Hummingbird Resources Inc sign a Gold-Mineral Development Agreement worth over US$250M for the Development of the largest Gold Mine in Southeast and Liberia at large.

11 January 2019

 

PRESS RELEASE

The Government of Liberia and Hummingbird Resources Inc sign a Gold-Mineral Development Agreement worth over US$250M for the Development of the largest Gold Mine in Southeast and Liberia at large.

 

On January 10, 2019, the Government of Liberia represented by the National Investment Commission (NIC), Ministry of Finance & Development Planning, Ministry of Mines & Energy the Ministry of Justice, and Hummingbird Resources Inc (Hummingbird) signed a 25-year Mineral Development Agreement-Gold (MDA) for the development of the largest gold mine in the South-Eastern Region, with an investment size of over US$250M. Hummingbird acknowledges that it has successfully defined about 3.8Moz at 1.24g/t Au, making the project the largest gold discovery in Liberia’s history.

The Government, represented by the Inter-Ministerial Concession Committee (IMCC) headed by the Chairman of the NIC, Hon Molewuleh B. Gray, believe that the signing of this agreement is critical and a highly positive development for the economy. Other Government representatives of the IMCC included the Office of Legal Advisor to the President, the Minister of Mines & Energy, Minister of Finance & Development Planning, and the Minister of Justice. Hummingbird Resources was represented by its Chief Financial officer, Mr. Tom Hill.

Hummingbird Resources Inc is a UK based Gold Mining Company with operations in Mali and Liberia. Founded in late 2005, Hummingbird Resources is a West African gold producer, developer and explorer (AIM:HUM), which listed on AIM in December 2010. Since Initial Public Offering (IPO) the Company has significantly grown its global resource inventory from an initial 0.8Moz to 6.4Moz across two countries, Mali and Liberia. In 2018, the Hummingbird Resources Inc agreement was re-negotiated by the Inter-Ministerial Concession Committee through thorough due diligence, analysis, and evaluation of the MDA proposal. The signing of the agreement concludes the review and re-negotiation for this MDA.

The Hummingbird project will operate across Sinoe, Grand Kru, River Gee and Maryland counties and directly benefit these counties as well as bringing further benefits to other counties in the southeast which have been isolated in terms of economic activity. Significantly, the southeast corridor will be linked to the rest of the country and its people will share in the economic growth and development of Liberia, something which has been lacking over the years. Through improved education, road connectivity, gainful employment, access to opportunities for development for those in the southeast will be much improved.

Following ratification and publication of the agreement into law, Hummingbird will pay a signature fee of US$3M to the Government of Liberia, US$1.5M to be paid within fifteen (15) days of the Effective Date and thereafter, US$1.5M to be paid on the granting of the Mining License. A Royalty of 3% (estimated to bring in millions of dollars in revenue) is given to the Government of Liberia on Gold revenues.  Additionally, the agreement allows 10% percent shares for Liberians. Hummingbird will also pay all other taxes and duties as set out in a fiscal agreement between the GoL and Humiingbird.

In keeping with the Government’s Pro-Poor Agenda, the Government has ensured that the MDA socially obligates Hummingbird, to, among other things, give first priority to qualified Liberians in terms of employment, help improve access to education and health care, give preference to Liberian suppliers in terms of procurement, and obey the Environmental Laws of Liberia. These key benefits as of the Hummingbird Agreement include:

Jobs: Over 1,000 direct jobs and around 2,500 indirect jobs. All unskilled jobs will be given to Liberians while preference will be given to qualified Liberians for skilled labor positions.


Roads & Infrastructure:

  • Hummingbird will upgrade the existing road from Greenville to Dugbe to two laterite road for general public use with capacity for handling of heavy traffic to be completed no late that than first anniversary following first commercial production.
  • Hummingbird will maintain and where appropriate rebuilt to extend existing roads within exploration area
  • Hummingbird will construct a two-story permanent building as corporate head quarter in Sinoe County
  • Hummingbird will also help develop, upgrade and maintain the port of Greenville

 

Education:

  • US$ 50,000 per year for high school and university scholarship to Liberians in the production area.
  • US$ 75,000 per year for the environmental science department of Tubman University
  • US$ 50,000 onetime contribution, to both the scientific research fund and mineral development fund.

Social Development Contribution: On an annual basis, commencing on the first anniversary of the effective date Hummingbird shall make an annual contribution to the Government through a Community Development fund for the affected communities as follows: Year 1-4: US$100,000 for Sinoe County, US$ 100,000 for Grand Kru, US$ 50,000 for River Gee and US$ 50,000 for Maryland County. Year 5-10: US$200,000 for each Production Area, Year 11 and onward US$250,000, throughout the term of the agreement.

The Chairman of the NIC, Hon. Molewuleh B. Gray, has pledge his support to ensuring that Investors are attracted to Liberia so as to enhance the Government” PAPD Agenda. The Chairman, reiterated his commitment during “the signing of the agreement indicating that the aligning of this agreement is the beginning of brighter days for the people of southeast” as the Hummingbird project will bring many key benefits to the Southeastern region of Liberia in support of the Government’s PAPD.

 

Signed: Management, National Investment Commission

 


Document to download
20190112_NIC-HBR Press Release.pdf - 224kb
 
  Copyright © 2016 www.investliberia.gov.lr All rights Reserved