–— Recommends several amendments
IPNEWS: Last week the Liberian House of Representatives approved a series of high-profile oil and mining agreements, including deals with Ivanhoe/HPX, TotalEnergies, and the controversial Oranto Oil, amid criticism from some lawmakers and general public who questioned the rationale and transparency behind the combined vote.
Representative Musa Hassan Bility of Nimba County, a vocal critic, warned that combining less popular bills with widely supported legislation is a common strategy used to secure approval of controversial measures. “One can safely assume that with the pushback against the Oranto deal from so many, the proponents knew that it had a high possibility of being rejected if submitted as a stand-alone instrument,” he said.
On the heels of those descending voices, a letter sent to U.S. Secretary of State Marco Rubio, by Moolenaar questioned the State Department’s favorable posture toward Ivanhoe Atlantic.
Moolenaar argued that Ivanhoe’s ownership structure includes major stakes held by Chinese state-linked companies, posing what he described as “serious geostrategic risks” at a time when Washington is attempting to reduce dependence on Beijing for global minerals.
Not only the US lawmaker expressed dissatisfaction over the deal. Back home in Liberia, Senator Nya D. Twayen Jr. has openly rejected current form of the deal. In a statement, he said his office completed a comprehensive review of the Ivanhoe concession—alongside the ORANTO Petroleum agreement and a pending ArcelorMittal arrangement
He demanded a clear, jointly agreed governance framework involving Liberia, Ivanhoe, and ArcelorMittal, and a stricter oversight of the community Development Fund (CDF); insisting the fund remain under direct government and community control.
Despite these warnings, the House of Representatives, sitting on the 18th day of its second session of the third quarter on last Thursday, December 11, members voted to pass on the agreement – ignoring all of the different stifles during the hearing process of the concession.
On the contrary, findings recommendation of a Joint Committee of both Houses of the Liberian Legislature have now recommended that the Concession and Access Agreement be approved subject to several amendments depareting from a previously passed approval by the House of Representatives.
The Joint Committee recommends that the Agreement provides that the 25-mile heavy-haul road from the Guinea–Liberia border to Tokadeh shall be fully paved prior to the commencement of any iron ore haulage; that the Agreement should provide that the Social contributions to affected communities shall be structured so that Ivanhoe is not directly involved in the implementation of community projects, that the countries and affected communities be the only parties to implement; and that the agreement shall explicitly require Ivanhoe to construct the rail line from the Guinean mine to the Tokadeh rail connection within two (2) years after the start of commercial production, consistent with the feasibility study as indicated by the Executive Branch.
Other recommendation by the joint committee are Upon ratification, the US$37 million paid by Ivanhoe shall be deemed a non-refundable signature bonus and not a loan or advance; that the Government of Liberia shall consider increasing the access fee from the current range of US$1.95–US$1.55 per ton to a range of US$3.00–US$2.00 per ton; and that the Agreement shall provide that if approval for the transshipment of Guinean iron ore through Liberia is not granted by the Government of Guinea within five (5) years, the Agreement shall automatically terminate.
The Joint Committee further recommends that Clause 16.1(d)(ii) be amended to clearly ensure that references to a National Rail Authority or an “NRA Act” do not constrain the constitutional authority of the Legislature, and that any decision to establish such an authority shall be made solely through separate legislative enactment, without giving rise to any contractual default or liability under the Agreement.
