President George Weah has announced the authorization of the Inter-Ministerial Concession Committee (IMCC) to involve Arcelor Mittal to re-submit the Arcelor Mittal Liberia $800 million expanded amendment Mineral Development Agreement Deal.
The Liberian legislature recently return the agreement to president Weah on grounds that it was not in the interest of every Liberian.
According to local media report, Weah’s latest action was announced in a communication sent to the House of Representatives through Speaker Bhofal Chambers and read in plenary on Thursday.
He stated: “I have directed the members of the Inter-Ministerial Concession Committee (IMCC), established by law for this purpose to review and analyze the points made in your letter to further confer with you and then to report their findings to me for further actions. Thereafter, I shall authorize the IMCC to hold discussions with Arcelor Mittal for the resubmission of an amendment that fairly satisfies the needs of that company while also upholding the national interests of Liberia.”
Amendment No. 3 to the Mineral Development Agreement (MDA) between the Government of Liberia on the one hand and ArcelorMittal Liberia Holdings Limited and ArcelorMittal Holdings A.G. was rejected by members of the House of Representatives on the other hand; saying, if the agreement becomes law, it would not serve the national interest.
The instrument was initially passed by the House and forwarded to the Senate for concurrence after several weeks of scrutiny.
However, the senate did not concur with the House in ratifying the draft MDA on grounds that it did not address most of the concerns raised by residents of the affected communities.
What are the Contentions?
On September 9, 2021, the Government of Liberia through the Executive and AML signed the completed negotiations for the AML 3rd amended agreement . The agreement was hailed by both parties as a win-win situation as it would lead to a US$800 million direct benefit to the government and paved the way for the expansion of the company’s mining and logistics operations in Liberia and allow ArcelorMittal to significantly ramp up production of premium iron ore, generating a significant number of new jobs and wider economic benefits for Liberia.
To become law, it was sent to the Legislature by the President for ratification. But some of the provisions in the draft agreement did not go down well with the lawmakers. Following series of consultative engagements with residents of the affected counties, the company officials and government negotiators, the House made major changes to the draft and sent to the Senate for concurrence.
The agreement, as submitted by the Executive, contained clauses that grant the company exclusive rights to the Yekepa to Buchanan railroad and Port of Buchanan, as captured in article 3, section 3(f) of AML’s third amendment to the MDA.
Article 3, Section F of the revised MDA, entitled, ‘The concessionaire’s capacity as Railroad Operator’, gives AML “the exclusive right to continue to serve as the operator of the Railroad during the term and any extended term of this agreement…”
Section F(2) puts AML “in charge of daily operations for the benefit of each and all Users in accordance with Railroad System Operating Principles and the Multi-User Agreement (when it becomes effective).”
Speaker Chambers, rejecting these clauses, said “This gives you the indication that the 54th Legislature, members of the House of Representatives, are supererogatory individuals. And they have done what is good for the country’s interest. It’s not one person. It is the whole body that has decided to take this high ground.”
In his letter, the President agreed with the House on the multi-user access of the rail and the port.
He said: “My Government remains fully committed to a fair multi-user access to and use of the railroad corridor from Yekepa to the port of Buchanan, and to the port of Buchanan itself, both by other Liberian enterprises and those from the sister Republic of Guinea. Such access and use will be beneficial to both nations and enhance the goals and purposes of the Economic Community of West Africa States and the Mano River Union to both of which Liberia is a member as is the sister Republic of Guinea.”
What did the new deal says?
As the largest foreign investor in Liberia, ArcelorMittal Liberia has invested over $1.7 billion in the country over the past 15 years, the company’s data shows.
More than 2000 jobs are expected to be created during the construction phase, with Liberians envisaged to fill the majority of the roles created.
ArcelorMittal is the world’s leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 17 countries. In 2020, ArcelorMittal had revenues of $53.3 billion and crude steel production of 71.5 million metric tonnes, while iron ore production reached 58.0 million metric tonnes.
The company supply Steel for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
