Mining services provider Corica Mining Services says the restart of work at Hummingbird Resources’ Kouroussa mine, in Guinea, is conditional on the payment of certain funds it believes it is due within 28 days, as well as the provision of a Deed of Company Guarantee.

Hummingbird earlier this week announced that Corica had halted operations at Kouroussa over contractual disputes between the two companies.

Corica says in a March 20 statement that its decision to halt work at Kouroussa relates to the nonpayment of invoices, totalling about $27-million, for work completed, as well as a failure by Hummingbird to procure and provide a Deed of Company Guarantee.

“Each of these substantial breaches of the contract gives rise to a separate and express right for Corica to suspend work at Kouroussa,” it states.

In response, Hummingbird says it “categorically disagrees” with the statements made by Corica.

Specifically, it disagrees with the quantum of monies owed to Corica, citing a consistent underperformance by the mining services firm.

“Since the inception of the contract in September 2022, Corica has consistently underperformed against established contractual performance targets, failing to meet the mining contract volumes principally due to delays in mobilising mining equipment, commissioning the equipment, as well as recruitment and training.

“In July 2023, Hummingbird notified Corica of a breach of contract due to the underperformance of the operation as noted above, granting [Hummingbird] the right, as per the contract terms, to withhold all payments until the breaches are rectified and the operational deficit volumes are addressed,” it says.

It adds that it has tried to work with Corica in good faith since July 2023 to rectify the material breaches, providing interim payments and bringing in other contractors to support Corica.

Hummingbird says it is seeking to engage with Corica to resolve the disputes between the parties.