BMMC Is A True Partner, Not A Cheat
Liberia’s investment industry is shaking. There is too much noise hovering over the operations of large-scale investments such as AcerlorMittal, Bea Mountain Mining Corporation, and many others, with some Liberians trumpeting review of their Mineral Development Agreements (MDAs), though the reality remains that most of these concessionaires have plenty years at their disposal to operate, and are adhering to the terms of their MDA.
Amid long-held concerns about the operations of BMMC in Kinjor, Grand Cape Mount County, recent visit by Vice President Jeremiah Koung to the company’s facilities has spurred and heightened sentiments, emotions, exasperation, exaggeration, misunderstanding and negative reporting against the company.
These developments come amid a highly toxic political environment where people tend to push different narratives, without proper understanding of what is at stake, in order to push their own agenda in the name of advocacy.
Though the contention and misunderstanding grew out of what was shown and displayed, in terms of the amount of gold being extracted and processed, it contradicted the raw facts.
Moreover, it overshadowed the tremendous contributions the company has made and continues to make towards national development, communities upliftment and human capacity development for thousands of Liberians, let alone the unprecedented employment benefits.
These commitments bear witness to the company’s fertile commitment and lasting partnership, ensuring that Liberia benefits from its resources by adhering to the terms of its MDA.
What is the truth
Amid the politicization of what was displayed – what is being misunderstood and misrepresented – there lie the truths about BMMC, its operations and activities.
Besides the one-sided outcome of the VP visit, many issues were discussed including support to the Government of Liberia in the areas of alternative renewable (solar) energy, and other infrastructural projects.
During the visit, the VP was given the opportunity to have insight of the company’s activities and provided some statistic, including the amount of gold produced per month, which specifically has created some uneasiness and consternation, resulting in mixed media views, many of which are negative towards the company.
Throwing light on the history of BMMCC, the company came to prominence in 2013 when its Mineral Development Agreement (MDA) was restated and amended (first signed in 2001) as it
prepared to transition from exploration to production.
It had recently been bought by the Canadian registered-London based Aureus Mining Company (AMC).
Aureus, a company publicly traded on the London and Canadian stock exchanges, had raised about $35 million USD and secured loans amounting to $110 million from two South African Banks (NedBank and Rand Merchant Bank).
This financing was a milestone for Liberia, as it was the first of its kind since post-war Liberia and it funded the construction of the Country’s first commercial gold mine.
Unfortunately, shortly thereafter, the EBOLA pandemic hit the country, disabling many projects and grossly affecting the timely delivery of the New Liberty Gold Mine.
Unable to raise the much-needed remaining capital to complete that phase of the project, Aureus was constrained to sell equity in the entity.
Unfortunately, the pandemic had rendered the country unattractive making it challenging to find an interested investor even after the project was reviewed by some 5 mining companies.
This situaiton threatened the success story for Liberia’s first commercial gold mine and created serious risk for the many stakeholders including the 1200 Liberians employed at the mine, as well as the well-being of thousands of Liberians living in the host communities.
In July 15, 2016, MNG Gold, Jersey (already operating a gold mine in Kokoya, Bong County) concluded the purchase of controlling interest in Aureus Mining Company and by
extension, Bea Mountain Mining Corporation.
This transaction saved a major project that initially targeted 800,000 thousand ounces of gold to be mined and depleted in 8 years, with maximum 1200 Liberian employees.
Statistics provided that in 2016, one mine, less than 2000 employees, 800k ounces of gold (measured and indicated) being mined at an annual average rate of 10k ounces per month at an average price of $1250 per ounce.
Those in the mining indicate that the business of mining, especially at the commercial level, requires massive investment in infrastructure, equipment and people.
This is to ensure that survival of the business is beyond the
original definitive indicators, an operator must invest heavily in exploration, improved technology and increased capacity.
The BMMC also finds itself in this story, as it is no exception.
Taking a look at year and average annual gold price (USD/oz) will provide further enlightenment and disabuse the misconceptions.
For example, 2017…..$1258, 2018…..$1269, 2018…..$1392, 2020…..$1770, 2022…..$1801, 2023…..$1943, 2024…..$2388, and 2025…..$3295.
However, in other to weather the storm, the company, between 2020 to 2023, launched an aggressive expansion program aimed at increasing the amount of gold produced.
This initiative, costing more than US$2 billion, included the opening of two satellite mines in Ndablama and Weaju, construction of 52 kilometers of haul roads to bring mined ore from these locations to New Liberty for processing, massive expansion of the process plants at New Liberty, purchasing 1300 additional mining equipment, expanding the HME and other ancillary facilities.
In 2025, a fourth satellite mine located 25 kilometers west of New Liberty, within the Matambo Corridor, was commissioned, increasing the overall production capacity to about 350K ounces per year.
This business strategy has proven to be very sound for the following reasons, including business continuity-as the original life of mine (LOM) was estimated at 8 years with an annual gold production target of about 120k.
It became clear that without this expansion, the project would have long ended.
Today, with aggressive near-mines exploration programs, the prospect increases for extension of the LOM.
The undertaking facilitated increased employment opportunity, because with expansion and extended LOM come more job opportunities.
BMMC’s current workforce, as of today, stands at about 10, 000 persons as compared to 2000 at the start of the project.
In addition to the feat, Liberians are acquiring related skills that otherwise would not have been possible. 3. Increased Local Content opportunities.
Today, many of the goods and services used at the various mines are being provided by local businesses, e.g. catering, security, janitorial, etc. The presence of the company’s operations in the rural areas spurs economic growth that otherwise wont exist.
It also increased revenue to the Government of Liberia-with most of the CAPEX in place now.
The company expects to contribute more than US$200 million to the national budget.
Far more than that, BMMC is poised to contribute more that 25% to the nation’s Gross Domestic Product (GDP)
On top of these, is the international recognition as a gold producer.
While Liberia is at the lower tier of gold producers in West Africa (10 tons per annum as compared to Ghana at 170 tons per annum), the prospects are good, with the proper investment climate for growth and expansion.
Long years of service and operations bear testimony to the company’s commitment and adherence to the value of its partnership with Liberia. The facts are clear that BMMC is a not a cheat, but a positive partner.
