REG - Hummingbird Res. - Publication of Sustainability Report 2022

Hummingbird ResourcesAnnouncement

06/06/2023 07:00

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RNS Number : 7232B  Hummingbird Resources PLC  06 June 2023

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

 

06 June 2023

Hummingbird Resources plc

("Hummingbird" or the "Company")

2022 Sustainability Report

Hummingbird Resources plc ("Hummingbird" or the "Company") (AIM: HUM), is
pleased to announce the release of the Company's 2022 Sustainability report.
The full report can be viewed on the Company's website
https://www.hummingbirdresources.co.uk/
(https://www.hummingbirdresources.co.uk/) .

 

Key highlights:

·      Measurable and significant benefits to the host countries which
Hummingbird operates in:

o  $438,123 spent on community and livelihood projects in Mali

o  0.84 LTIFR with 0 fatalities at Yanfolila, Mali

o  >2.5 million lost time injury ("LTI") free hours in 2022 at Kouroussa
Gold Project in Guinea

o  $15.2 million of estimated economic contribution to host nations in taxes
and duties

o  85% of process water recycled

o  90% national employment at operations

o  10,000 trees planted annually in Yanfolila through the Hummingbird Tree
Initiative

·      Responsible gold mining focus, with several key achievements:

o  Successfully achieved full compliance with the World Gold Council's
Responsible Gold Mining Principles ("RGMPs"). The result of significant work
over the past three years on improving ESG integration and monitoring, this is
a significant step on the ESG journey which the Company can take pride in.

o  Improved measurement practices for GHG emissions, with continued
assessment of options for reducing the carbon intensity across the Company's'
operations. Key emissions reduction strategies include a 7MW solar PV system
and heat recovery system to be installed at the Kouroussa site, which is
expected to have a significant impact on emissions, while also saving cost.
 

o  Continued to support initiatives which are having a positive impact on the
ground, working in tandem with community needs. Initiatives including water
infrastructure to provide vital sources of water, the market garden programme
to provide an alternative source of livelihood for around 900 people in local
communities, primarily women, continued sponsorship of teachers to support the
education system, the ongoing poultry farm project which provides skills for
young people, spraying programmes to prevent malaria, and improvements to
local road infrastructure. The Hummingbird Tree Initiative now successfully
plants 10,000 trees a year, creating a source of income while providing skills
in plant propagation.

o  The Single Mine Origin (SMO) Gold initiative, of which Hummingbird is a
founding member, continued to be adopted by miners and manufacturers in 2022.
The SMO certification provides assurance of our responsible operation for our
whole supply chain, including end consumers.

Dan Betts, Interim Chair and CEO of Hummingbird, commented:

"I am pleased to share with you progress we have made over the past year and
beyond on sustainability issues, demonstrating our ongoing commitment to
improving our performance as we continue to advance towards a high level of
Environmental, Social and Governance ("ESG") disclosure. Strong ESG
performance is essential to the sustainable success of our business, as it
underpins our social licence to operate, and serves as the foundation of our
important relationships with the communities and governments of our host
nations. Our core value of responsible mining underpins our internal
practices, and our focus on providing a positive lasting legacy in the regions
where we operate.''

Sustainability Report Highlights

Hummingbird's 2022 Sustainability Report has been prepared with guidance from
an external sustainability consultancy firm. A materiality assessment process
reviewed key issues for the mining sector in order to determine their
materiality to the company. The determination of material topics and their
importance in turn inform the disclosures in the Sustainability Report
(''Report''), ensuring that the Report addresses all topics which are
determined to be most material to mining companies by recognised ESG
frameworks.. In future reports, we will consider different frameworks to align
our sustainability disclosures against in addition to the RGMPs and intend for
our 2023 sustainability report to be our first report to address the
recommendations of the Task force on Climate-related Financial Disclosures
("TCFD").

 

Environment

Our approach to environmental management is to avoid, reduce, mitigate, and
compensate our impacts wherever possible, with our objective being to protect
and conserve the natural environment, and to continually improve our
performance.

Greenhouse gas ("GHG") emissions and energy efficiency.

 Scope 1+2 emissions and contractor emissions
                                                 UK and Offshore  Global      Total
 Scope 1 (tCO2e)                                 -                12,447      12,446
 Scope 2 (Location-based) (tCO2e)                5                53          57
 Contractor emissions (part of Scope 3) (tCO2e)  -                63,900      63,900
 Energy Consumption (kWh)                        24,452           47,775,564  47,800,016

 

 Emissions by area of operation
 Location                              Scope 1 (tCO2e)  Scope 2 (tCO2e)  Contractor emissions (tCO2e) (part of Scope 3)  Total (tCO2e)
 Yanfolila (including Bamako office)   11,594           40               58,998                                          70,632
 Kouroussa (including Conakry office)  852              13               4,902                                           5,767
 London                                -                5                -                                               5
 Total                                 12,446           57               63,900                                          76,404

 

 Emissions intensity (tCO2e / oz gold)
 Scope 1 + 2 + contractor emissions intensity  0.95
 Scope 1+2 intensity                           0.16

* Numbers are displayed in rounded form meaning sum totals may differ by a
value of 1

Water management.

·      Water is essential for mining activities and is used at many
different stages in our operations, including ore processing. Good management
of water and robust water efficiency measures are critical for protecting the
surrounding environment, and for ensuring that there is enough water for other
users.

 

Yanfolila Water Management

                                          2020  2021  2022
 Water recycled from TSF (%)              78%   86%   85%
 Fresh water efficiency (m(3)/tonne ore)  0.42  0.26  0.20

 

Tailing storage facility ("TSF") management.

·      Tailings are the residual by-product of mining activities, and
are stored in Tailings Storage Facilities (TSF). Tailings facilities need to
be properly managed in order to ensure their stability and to prevent seepage,
given that tailings contain residual hazardous chemicals from processing
activities. Due to the significant environmental impact they can have, good
management of tailings is one of our highest priorities.

 

·      The Yanfolila TSF is subject to monthly internal review and
monitoring, a third-party review of the dam's design, and construction and
continued operation is completed in compliance with the Global Industry
Standard on Tailings Management (GISTM). The TSF is independently audited
quarterly by a chartered engineer, and independently audited annually by
Knight Piésold, a specialist geotechnical consultancy, in order to ensure
alignment with established international standards and practices, and to make
any recommendations for changes in operating practices.

 

·      Knight Piésold designed and was the engineering company for the
TSF construction at the Kouroussa project. Once in operations, the Kouroussa
TSF will mirror the same tailings management as at  Yanfolila.

Biodiversity.

·      Our mines are located at sites with ecological and
biodiversity-related sensitivities, with the potential for our operations to
have a significant impact on local wildlife and ecology. In accordance with
our Environmental Policy, we are committed to avoiding or mitigating our
biodiversity impacts, and we seek to rehabilitate and protect the environments
where our operations are located. We do not undertake exploration or mining
activities on UNESCO World Heritage Sites.

 

Our management of biodiversity begins during the planning stage of each
project, with environmental procedures and protections integrated into ongoing
plans. Each site is subject to an Environmental and Social Impact Assessment
(ESIA) from an early stage, followed by the development of Biodiversity
Management Plans (BMP). ESIAs help us to determine the impacts our operations
may present, which in turn informs our environmental approach for each site.

o  At the Yanfolila site, a number of ESIA studies have been completed over
the years, including an ESIA study in 2013 followed by an independent Rapid
Wildlife Assessment in 2015, an ESIA study in Sanioumale East in 2021 ahead of
the 2022 resettlement programme and an ESIA study in 2022 at the Komana East
Underground Location.

o  An ESIA was performed at the Kouroussa site as a prerequisite to obtaining
environmental authorisation for mine development. An updated ESIA report was
the initiated in 2020, which provided the basis for the site's Biodiversity
Management Plan.

o  In 2022 an ESIA was completed for the Dugbe site by Pasofino, in
accordance with the Liberian Environmental Protection Agency's (EPA)
Environmental and Social Impact Assessment Procedural Guidelines (2017). The
ESIA involved primary environmental and social data collection by a team of
Liberian and international specialists, and built on data available from the
previous ESIA study of the site completed in 2015.

Following the ESIA, an Environmental and Social Management Plan (ESMP) has
been developed that outlines the management required to mitigate negative
impacts and optimise positive impacts from the project, which along with the
ESIA has been submitted to the Liberian EPA.

Social and country economic highlights

Local communities.

·      Education at Yanfolila, Mali

o  Since 2016 we have sponsored 12 teachers at local schools to assist in the
delivery of education to some of Mali's poorest rural communes, improving the
education system in a region covering 10 villages. At the Sanioumale site, we
have recently provided salaries for three teachers, and paid for the
construction of three additional classrooms.

o  We have additionally partnered with Malian NGOs to offer vocational
training programmes to youths, with topics including both trade skills and
basic business schools.

·      Market Gardens

o  Since commencing operations at Yanfolila, we have supported the
development of local community market gardens servicing 16 villages. In the
communities surrounding the Yanfolila mine, these provide sustainable
alternative livelihoods and agricultural skills for over 900 people, mainly
local women.

o  We provide support for water infrastructure and the wells required to
operate the garden, building infrastructure and maintenance and supplying
tools and training in agriculture techniques.

o  Planning is underway for future community livelihood programmes at
Kouroussa, with an agreement reached with the community to develop a market
garden programme with accompanying wells.

 

Community Healthcare

o  In partnership with Critical Care International ("CCI") we continued to
deliver our annual malaria Indoor Residual Spraying ("IRS") campaigns.

 

o  The IRS treated five satellite villages of the mine during the rainy
season, Bougoudalé, Tiémba, Lèba, Soloba and Komana, with a total of over
2,000 structures sprayed and 10,457 individuals protected.

o  Hummingbird also supported the construction and continues to support the
running of a community health centre in Bougoudalé, details of which are
given on page 33.

o  Additionally, through CCI we run educational workshops to inform employees
and local communities on topics including infectious disease, maternity, and
sexual health.

o  A summary of expenditures in 2022 at Yanfolila on both community
investments and livelihood projects is given below:

 

 PROJECT AREA                              2022 ACTIVITIES                           EXPENDITURE

                                                                                             (USD)
 Livelihood restoration and food security  Soap project                              123,637

                                           Poultry farm project

                                           Market gardens
 WASH programme                            Borehole construction                     126,065

                                           Bougoudalé water supply

                                           Market garden wells
 Education / Training                      Construction of classrooms at Sanioumale  67,092

                                           Sponsorship for English courses

                                           Nurse and teacher salaries (20)
 Health                                    Maternity equipment                       9,091

                                           Malaria sprays
 Stakeholder engagement                    Committee meetings                        112,238

                                           Local donations

 Total:      438,123

 

Training

All employees and contractors are required to complete Hummingbird's safety
training modules in hazard awareness, job safety analysis, basic fire
response, and first aid and chemicals awareness. We provide role-specific
training for roles with higher risk, including for the handling of cyanide.
Site safety managers are responsible for maintaining safety training records.

In 2022, training hours were 13,464 (2021: 6,230 hours) above our target of
11,400 hours annually. In 2023,

we expect to continue to meet our safety training target.

Training Hours

 Topic                                                        Training Hours
 Safety Inductions                                            4,355
 External Emergency Response Training                         440
 Cyanide Awareness                                            1,340
 Working at Heights                                           320
 Workplace Inspection                                         384
 Industrial Fire Fighting                                     864
 First Aid Training                                           1,325
 Defensive Driver Training                                    984
 Security Training - VPSHR                                    264
 Other Safety Training (including hazard awareness and LOTO)  3,188
 Total Training Hours                                         13,464

 

Local and national employment focus.

·      The involvement of local people working within our mine and
across our projects is central to our vision of sustainable and responsible
mining. We prioritise local and national recruitment at both sites to help
build talent and skills in our organisation and to contribute to our positive
impact on local, regional, and national economies and communities.

 

·      At both operational sites we are committed to ongoing
nationalisation plans for all positions and national succession plans for
roles currently held by international employees.

 

·      At Yanfolila, 94% of all site employees, including contractors,
are Malian nationals. Out of all Malian employees, 37% are from local
communities, an improvement on 35% in 2021.

 

·      At Kouroussa, 83% of all site employees, including contractors,
are Guinean nationals. Out of all Guinean employees, 63% are from local
communities.

 

 

Ethical business

Anti-bribery and Corruption

At Hummingbird, we have no tolerance for bribery and corruption. Bribery is a
crime which has a major negative economic, political and environmental impact
on societies, and diverts public resources from priorities such as education,
infrastructure and health.

Our Anti-bribery and Corruption Policy is part of the Code of Conduct, which
is shared with and signed by all employees upon commencement. This policy
applies to all employees and provides instruction on the principles and
behaviours in relation to bribery which must be adhered to. The policy details
the whistleblowing channels through which concerns can be raised, and includes
an option for confidential reporting of incidents.

We require all employees to complete anti-bribery training upon commencement
and sign a declaration in relation to Conflict of Interest and the Gift &
Hospitality register, and complete updated training annually. Training courses
cover our expectations of employee behaviour, and how to effectively recognise
and report instances of potential misconduct.

We have Code of Conduct and Anti-bribery and Corruption classroom trainings at
sites, run by our HR teams, in order to ensure that employees who do not have
access to computers, who are on rotation, or who have low literacy have access
to regular training.

Whistleblowing

We take any misconduct in relation to our Policies seriously, and intends to
maintain a culture of openness and accountability. Employees at all levels are
encouraged to speak up in relation to suspected wrongdoing on issues including
bribery, corruption, dangers to health and safety, or any other breach of
internal policies and procedures. Our Whistleblowing Policy recommends that
staff raise issues with their line managers, and includes a confidential line
of reporting available at all hours, with contact options for email and phone
included to report issues directly to the Chair of the Audit Committee, the
Company Secretary, and the CEO.

Modern Slavery

In compliance with the UK Modern Slavery Act 2015, Hummingbird publishes an
annual Modern Slavery Statement, approved by the Board, which describes the
steps taken towards seeking to ensure that there is no slavery or human
trafficking within our business or at any stage of the supply chain. Respect
for human rights and total compliance with laws on forced labour and
trafficking are conditions of our Supplier Code of Conduct, with due diligence
carried out on key suppliers as part of the tender process. There were no
reported cases of modern slavery during 2022 for Hummingbird.

Qualified persons

"We're pleased to have worked closely with Hummingbird Resources on the
development of their 2022 Sustainability Report, and to have created a report
which reflects the efforts made by the company towards having a positive
lasting impact on the people and environments of its host nations. As part of
preparing the report Sillion carried out a materiality assessment, and
calculated Hummingbird's Scope 1 and 2 greenhouse gas emissions for the first
time, preparing these in line with the GHG Protocol Corporate Accounting and
Reporting Standard. We're looking forward to assisting Hummingbird further as
the company continues on its sustainability journey."

-      Joe Beviss, Senior Sustainability Consultant, Sillion

 

 

**ENDS**

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold producing Company, member of the World Gold Council
and founding member of Single Mine Origin (www.singlemineorigin.com). The
Company currently has two core gold projects, the operational Yanfolila Gold
Mine in Mali, and the Kouroussa Gold Mine in Guinea, which will more than
double current gold production when in production, scheduled for first gold
pour the end of Q2 2023. Further, the Company has a controlling interest in
the Dugbe Gold Project in Liberia that is being developed by joint venture
partners, Pasofino Gold Limited. The final feasibility results on Dugbe
showcase 2.76Moz in Reserves and strong economics such as a 3.5-year capex
payback period once in production, and a 14-year life of mine at a low AISC
profile. Our vision is to continue to grow our asset base, producing
profitable ounces, while central to all we do being our Environmental, Social
& Governance ("ESG") policies and practices.

 

For further information, please visit hummingbirdresources.co.uk
(https://www.hummingbirdresources.co.uk/)  or contact:

 

 

 Daniel Betts, CEO       Hummingbird Resources plc  Tel: +44 (0) 20 7409 6660

 Thomas Hill, FD

 Edward Montgomery, CD
 James Spinney           Strand Hanson Limited      Tel: +44 (0) 20 7409 3494

 Ritchie Balmer          Nominated Adviser
 James Asensio           Canaccord Genuity Limited  Tel: +44 (0) 20 7523 8000

 Gordon Hamilton         Broker
 Bobby Morse             Buchanan                   Tel:  +44 (0) 20 7466 5000

 Oonagh Reidy            Financial PR/IR            Email: HUM@buchanan.uk.com (mailto:HUM@buchanan.uk.com)

 George Pope

 

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