Lawmakers’ inquest finds Arcelor Mittal failed to live up to Mineral Development Agreement after 15 years in Liberia

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The company previously employed over 3,000 Liberians but redundant later due to drop in Iron ore price

Officials of Nimba especially lawmakers expressed disappointment over the  World largest Steel producer over its failure to fully implement its Mineral Development Agreement  over 15 years after the signing agreement with the government of Liberia.

The government of Liberia and Mittal signed the agreement in 2005 to develop Liberia iron ore deposit that was left behind by Liberian-Swedish company called Liberian American Mining Company (LAMCO).

The company agreed to develop and re-condition facilities left behind by LAMCO that included schools, hospital and other residential areas for employees of  Arcelor Mittal.

Additionally, three counties; Nimba Bong and Grand Bassa were expected to benefit from 1.5million annually during the course of the company’s 25 years agreement.

But to the amazement of officials of Nimba County, 16 years since the company to Liberia nothing much have been changed while at the same time Arcleor Mittal is wanting to expand its operation in Liberia after it recently announced pumping addional US$800million investment.

 “I have seen that nothing has changed. But I can say to you that I am not impressed because this is just the same old building, no addition and no subtraction for almost 75 to 80 year”, said NImba County Senator Jeremiah Koung.

Sen. Koung told a team journalists recently during a tour of Arcelor Mittal operation area that “there has been no much change since the  world’s biggest steel giant came to the country.

“It doesn’t look good; it doesn’t represent the kind of investment we have in this country,” Jeremiah Kpang Koung further told Yekeh Hospital administration.

The hospital, one of Liberia’s best pre-war medical facilities, boosted 100 bed, but has now reduced to 60 under the supervision of ArceloMittal.

On Friday, Senator Koung led a five-member legislative caucus’ fact finding mission to the company’s concession area in Nimba County. The tour comes as as the company and

Ahead of legislating of legislating Arcelor Mittal new agreement, lawmakers who are currently on their Legislative break, visited the area, toured the company’s facilities and held series of town hall meetings with residents of the affected communities all aimed at getting first-hand information about the company’s operations and its implementation of the first Mineral Development Agreement (MDA).

The first MDA calls for the company to carry out mining operations at the Yekepa, Nimba County and Buchanan, Grand Bassa County concessions. This agreement was then renegotiated and amended in 2006.

The MDA carries stringent conditions regarding sustainable development and economic, social and environmental investment. Its aimed to ensure that, while foreign companies are able to generate a profit from their investment in the extraction of Liberia’s resources, the country and its citizens benefit as well.

However, residents say they are yet to fully benefit from the company’s operations.

“There is no safe drinking water in our town. We don’t have any employment opportunity. We are living in total hardship,” laments Gabriel Dunbar Gbanlon, former Commissioner and now spokesperson of Sehyikimpa, in Saniquellie Mah District.

At a town hall meeting with the lawmakers, Mr. Gbanlon said the future of the town is bleak, as no learning opportunities for the children and young people. He said students from the town highly make a pass at the company’s vocational school, insinuating that the company deliberately deny the students and leaving them with no opportunity to learn any skill. With no skills, there will be no opportunity to work, he said.

“We called on you to intervene, and let our children go to school. That’s the only hope,” he pleaded with the lawmakers.

In Zolowee, the narratives were the same. “We don’t have clinic in our town. When we get sick, we go to Sanniquellie. For pregnant women to deliver safely, they have  to go Sanniquellie. We are living in hell,” Patricia Wantoe, in her mid-30s told FrontPage Africa.

“There is no road. Life is difficult for us here. We expected things to be better for us. But since ArcelorMittal came, noting good is happening for us. Let our lawmakers talk for us. We are suffering,” added Ruth Zoyah.

On behalf of the townspeople, J. Madison Zowehyee told the lawmakers in a mass gathering that the company has refused to employ residents of the area. “We have been left out in everything; even the unskilled job,” Zowehyee said, as the lawmakers listened attentively.

Senator Koung was joined on the trip by his colleagues including Representatives Prince O.S. Tokpah (District #2), Gonpue L. Kargon (District #3), Dorwohn Twain Gleekia (District #6) and Roger S.W.Y. Domah (District#7). They, on separate occasions assured the citizens they would engage their colleagues on Capitol Hill to ensure the company live up to its corporate social responsibilities. 

Company operating in Containers

The agreement also includes commitments to improve and rehabilitate existing infrastructures, environmental protection and an overall guiding principle of uplifting Liberia and its people.

However, major structures like the workstation, which used to be the largest in West Africa is covered by thick bushes. Most of the staff buildings are abandoned. Instead of rehabilitating them, the company opted to use 40ft and 44ft containers as shelters and offices for staff.   In some of containers, workers are cramped in small rooms with beds the size of medium-sized boxes or a caskets.

Arcelor Mittal is yet to improve the living condition of affected communities but continue to operation in containers

The company is also required to establish and maintain medical and education facilities in areas of operation, to serve employees, their families and the broader community and to prioritize the employment and development of local Liberians. 

The lawmakers, most of whom were so familiar to Yekepa prior to the civil war, expressed disillusionment seeing the area overtaken by bush.

 “When LAMCO was here, if you came here, you would know that company was here. With Arcelor Mittal here, see what is here. And this is the biggest steel company in the world. So, we can see for ourselves. That’s what we taking to our friends and to share with our friends,” Said Senator Koung.

 

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