IPNEWS: ArcelorMittal Liberia has unveiled a $1.4 billion expansion plan that promises substantial economic benefits for the country, including 2,000 additional direct jobs and a dramatic increase in government revenue. The company, which has six years remaining on its current agreement, is set to expand its mining operations, upgrade infrastructure, and build a new ore processing plant.
The expansion has already contributed to the creation of 3,000 new jobs, and if approved, it could raise Liberia’s annual revenue from approximately $40 million to $200 million. This increase would play a key role in helping the Boakai administration achieve its target of $1 billion in government revenue, especially given the country’s current budget of $800 million.
However, High Power Exploration (HPX), a Guinean mining company, is actively opposing the deal, mainly due to concerns over control of Liberia’s railway. HPX is lobbying against ArcelorMittal’s continued operation of the rail, despite the company’s significant investment in its rehabilitation.
Railway Dispute: A Battle Over Control
The railway at the heart of the dispute was included in ArcelorMittal’s first Mineral Development Agreement (MDA) amendment in 2006, ratified in 2007, which allowed for third-party access and eventual reversion of ownership to the Government of Liberia (GoL). While ArcelorMittal has been open to discussions about third-party usage, no agreements have been finalized due to external factors beyond its control.
In 2019, Guinea and Liberia signed a deal permitting limited transport of Guinean iron ore—capped at five million tons per annum (mtpa)—through Liberia. Now, HPX wants to transport its ore through Liberia while only offering between $5 million and $10 million in fees, compared to ArcelorMittal’s proposed $200 million annual contribution.
Despite this major financial disparity, HPX is pushing to block ArcelorMittal from retaining control of the railway, a demand the company views as unfair given its $800 million investment in rebuilding and maintaining the rail infrastructure.
Economic Impact and National Interests
ArcelorMittal argues that as the company mining Liberian iron ore and employing thousands of Liberians, it is best suited to continue operating the railway. The company asserts that if HPX were in its position, it would not agree to relinquish control under similar circumstances.
With Liberia standing to gain $200 million annually from ArcelorMittal’s expansion compared to only $10 million from HPX’s proposal, the debate over railway control raises crucial economic and national interest questions. Should HPX be allowed to obstruct a deal that has the potential to boost Liberia’s economy, create thousands of jobs, and help the government meet its revenue goals?
The Boakai administration now faces a critical decision—one that will determine the future of Liberia’s mining sector and the strategic management of its natural resources.
