IPNEWS: IPNEWS: The Executive Masion reported Saturday, December 28, of President Boakai’s two days official visit to the Republic of Ghana. Even though the Executive Masion provided little on the President’s visit, except that the Liberian leader visit is centered around holding consultations with his counterparts, incoming Presidents of Ghana, John Dramani Mahama, and outgoing Ghanaian President, Nana Addo Dankwa Akufo-Addo, including honoring an invitation to attend the wedding ceremony of the daughter of a longstanding friend of his (named withheld).
Amidst this visit by President Joseph Boakai, speculations remain high in Monrovia over a final consummation of a mineral deal between the government of Liberia, and Solway Mining Incorporated this weekend in the Ghanaian capital Accra.
According to the report, a Mineral deal between Solway Mining Incorporated with reported major share ownership by Ibrahim Mahama, brother to incoming Ghanian President John Dramani Mahama might just be in full sight.
IPNEWS is yet to get responses from inquiries made to both the Minister of Information and Presidential Press Secretary.
However, it may be recalled, in late November 2023, report emerged how Ghanian businessman Ibrahim Mahama, CEO of Engineers & Planners Limited, had sought to buy the Solway Mining Limited in Liberia with suspected support from a group Russian Businessmen through its Embassy in Accra, Ghana.
Controversy arose over the deal after reports suggested that HPX, initially known for its acquisition of the Nimba Mount project in Guinean, attempted to assert its relevance in Liberia by allegedly pursuing an acquisition of Solway Mining Incorporated, despite its lack of any footprint in the Mining sector in Liberia.
Further report details that at the center of the controversy lies a complex web of connections involving HPX, leveraging on ties with influential figures like Mr. Ibrahim Mahama, brother of incoming Ghanaian President John Mahama, and a faction of disgruntled Russians from the former Putu Mining in Grand Gedeh County to access Solway.
On heels of these, Ibrahim Mahama embarked on frequent visits to Liberia and engaged with high-ranking government officials fueling additional suspicion of a concerted effort to secure control over Solway Mining Limited Liberia. Central to the controversy is the disputed ownership of Solway Mining Limited Liberia, and steel giant ArcelorMittal.
In like of the speculation of a final takeover of Solway Mining Limited Liberia, Ghanaian businessman Ibrahim Mahama, also C.E.O. of Engineers & Planners Limited, returned to Monrovia donating 20 police vehicles and three 1,200 KVA electricity generators to the Liberia Airport Authority, to boost Liberia’s infrastructure and security capabilities.
The presentation took place July 20, 2024, in Monrovia, and attended by Liberian President His Excellency Joseph Boakai and Vice President His Excellency Jeremiah Koung.
According to Ibrahim Mahama, his generous contribution is expected to enhance the operational efficiency and security at the Roberts International Airport in Monrovia, Liberia’s primary international gateway, stressing that the 20 police vehicles will bolster the airport’s security force, while the high-capacity generators will ensure a reliable power supply, critical for airport operations.
During the ceremony, President Boakai expressed his profound gratitude to Mr Mahama, a brother of the former President of the Republic of Ghana and flagbearer for the 2024 general elections, Mr John Dramani Mahama for his philanthropy, emphasizing the importance of such contributions to the nation’s development. “This donation will significantly improve our airport’s capabilities, ensuring the safety and comfort of travelers and boosting our overall infrastructure,” President Boakai stated.
Vice President Koung, on his part, echoed these sentiments, highlighting the longstanding relationship between Ghana and Liberia. “This act of generosity from Mr Ibrahim Mahama is a testament to the strong bond between our two nations. We are deeply appreciative of his support and commitment to Liberia’s progress,” Koung said.
The donation by Mr. Ibrahim Mahama sparked uneasiness with many wonderings as to why a single man would seeks to provide such huge support to Liberia when there are huge security challenges in Ghana.
In 2012, the Ellen Johnson Sirleaf administration, with Patrick Sendolo as Minister of Lands, Mines & Energy, granted an iron ore exploration permit to Mount Bele Resources on Blei Community Forest land and a permit to process iron ore tailings in the southwestern portion of the Barcoline community, Nimba County. Upon discovery that the area had been given to ArcelorMittal Liberia, Minister Sendolo under the instruction of former President Sirleaf canceled the exploration permit which eventually landed the case at the ECOWAS Court but was struck out.
Mineral maps and documents available show that it is the same area that the Weah-led administration granted an exploration permit to SOLWAY Mining Group.
According to maps and diagrams of the area, the controversial SOLWAY is encroaching in the same area as the Blei Concession area totaling 5574 ha tied to claim during the Sirleaf wherein iron ore exploration permit was allegedly given to Mount Bele Resources and subsequently canceled due to encroachment.
The diagrams and maps show that there was some overlapping between Blei area concession and Nimba Western area.
The overlap between Blei Concession area with Nimba concession area = 3192 ha;
Blei concession area free and not overlapping with existing ArcelorMittal Liberia concession areas = 1025 ha and Blei Community Forest area inside Blei concession area = 648 ha.
The U.S. State Department 2019 Investment Climate Report recalled that in January 2018, Mount Bele Resources (MBR) Liberia Ltd (MBR) filed an application with the Community Court of Justice of ECOWAS seeking redress for what it termed the “arbitrary revocation of [MBR’s] Mineral Exploration License without due process resulting [in the] denial of its proprietary rights over same and the loss of USD 21 million investment in the mining industry.”
The report further noted in that report: “The U.S. Embassy is aware of unresolved concessions-related land disputes. As firms commence operations, local communities may fear that their lands are being encroached upon, which can lead to disputes, strikes, and sometimes violence. In the interest of minimizing lost productivity and in the absence of government adjudication, companies often make additional community-level payments or agreements to resolve competing land claims. The future enforceability of such agreements is unclear. Prospective investors should not underestimate the potential for costly and complex land dispute issues to arise even after concluding agreements with the government.”
The ECOWAS Court with case no. ECW/CCJ/APP/04/18 involving Mount Bele Resources Limited and the Republic of Liberia, the Court granted the plaintiff’s notice of discontinuance of the suit, and the case was struck out.
“The Solway License is for Iron Ore and the relevant area is within AM’s Concession Area. Accordingly, it is patently clear that the issuance of the Solway License violates AM’s exclusive rights under the MDA,” AML complained.
“It is therefore of concern that AM (AML) has become aware of the existence of certain agreements that your government has sought to conclude with third parties, as well as certain licenses [issue gave] rise to breaches of AM’s rights under the MDA,” AML added. “These apparent violations are at odds with the government’s legal obligations towards AM and, if remained unaddressed, risk bringing about irreparable harm to AM’s current operations and future business plans. Most importantly, they call into question the Government’s commitment to its longstanding partnership with AM.”
Solway Mining Group is said to be a subsidiary of Solway Industries Limited that has been licensed by the Liberia Government to undertake iron ore exploration to ascertain the existence, location, quantity, and quality of commercial value of deposits in the exploration area that covers approximately 56 Sq.Km is defined by the UTM coordinates of Spatial Reference.
The granting of an exploration license to the company by the Liberian Government means Solway will explore Mount Mbelle located in Zor Clan, Nimba Third Electoral District and Mount Detton in Sehyi Clan, Nimba Second Electoral District; two areas where significant portions fall within the ArcelorMittal Concession Areas, according to the company.
In October 2023, report emerged that the government of Liberia had revoked the mining license of Solway Mining granting ArcelorMittal the right for a possible annexation.
ongoing developments in Liberia’s mining sector starting with the visits of both HPX and ArcelorMittal owners to Liberia have raised eyebrows and sparked stakeholder concerns especially over the conduct of High-Power Exploration (HPX) which recently signed a letter of intent with the Government of Liberia to invest up to $5 billion, for among others, construction of a railway from Guinea to Buchana Port.
Early April 2024, President Joseph Nyuma Boakai expressed his administration’s commitment to signing the amended ArcelorMittal Mineral Development Agreement that has stalled in the corridors of the Executive Mansion and the Legislature for over three years.
President Boakai made the commitment following a high-level meeting with Mr. Lakshmi Mittal, the Executive Chairman of ArcelorMittal.
President Boakai said : “We are very proud of the investment they [ArcelorMittal] have made in this country. Our determination is to encourage further investment. We know that there are some hurdles along the way, but we are committed to making sure that we resolve them to encourage the investment and that we can find a way forward in the interest of the country and the investors. We just assure him that there is nothing that is going to stop our relationship and we want to encourage their increased investment in Liberia.”
The meeting marks the first encounter between Mr. Mittal, Executive Chairman of the world’s second largest steelmaker and President Boakai since the President’s inauguration. A joint statement issued by the Executive Mansion and the ArcelorMittal said the discussion focused on ArcelorMittal’s operations in Liberia and President Boakai’s Agriculture, Roads, Rule of Law, Education, Sanitation, and Tourism (ARREST) Agenda for the sustainable development of Liberia.
It added that the meeting underscored the strong ties and collaborative spirit that have characterized the relationship between Liberia and ArcelorMittal since 2005 when the company first entered the country after the civil war.
It quotes President Boakai as saying that the Government of Liberia recognizes ArcelorMittal’s commitment to Liberia and its people, and look forward to continuing the partnership with ArcelorMittal as a trusted ally, diversifying support for Liberia’s transformation, and ensuring Liberians benefit from these investments.
ArcelorMittal’s initial operation played an important role in Liberia’s mining industry, and its current US$1.4 billion investment aims to expand iron ore production to 15 million tons annually. Today, ArcelorMittal remains the largest foreign investor in Liberia.
With this new outlay, the company notes that its total investments in the country will exceed US$3.0 billion, which also includes a substantial investment in the Yekepa-Buchanan rail infrastructure. The first phase of the expansion is due for completion in late 2024. ArcelorMittal is further studying a phased development of up to 30 million tons per annum.
Consistent with President Boakai’s vision of empowering Liberian youth with essential technical and operational skills, ArcelorMittal reaffirmed its dedication to additional investment in its Vocational and Technical Center (VTC), as well as support to other Technical Vocational Education and Training (TVET) institutes in Liberia.
By this year 2025, ArcelorMittal’s VTC program will have 200 skilled youths in it program in addition to the 100 who have already graduated, adding that the collaboration with other technical vocational training centers around the country will help to enrich Liberia’s talent pool and drive socioeconomic advancement in the country. The company pledge to continue to provide scholarships for Liberian students pursuing higher education abroad, thereby nurturing the next generation of leaders.
As an integral component of Liberia’s socio-economic development, the Government expressed commitment to combat the trafficking and consumption of illicit drugs. ArcelorMittal said it is aligned with this mission and pledged support by investing in community programs and initiatives aimed at raising awareness among local communities about the risks associated with harmful substance use, safeguarding livelihoods and the wellbeing of Liberians.
ArcelorMittal remains the biggest investor and contributor of direct and indirect taxes in Liberia. The company pledged its commitment to continue to create economic opportunities for Liberians by creating jobs, supporting local businesses, developing hospitals and schools, and participating in the refurbishment of critical road infrastructure such as the Ganta-Yekepa Highway, which is a vital economic link in the regional road network connecting neighboring countries Guinea and Cote d’Ivoire.
In 2021, ArcelorMittal and the immediate past government signed an expansion deal to the Mineral Development Agreement, giving the greenlight for the expansion of the company’s mining and logistics operations in Liberia. However, ratification of the MDA became politicized and ended up back with the Executive which was later found to have influenced the return.
Speaking alongside President Boakai, Executive Chairman Lakshmi Mittal expressed satisfaction with the President’s assurances and reiterated the company’s dedication to Liberia’s growth. He emphasized the need for executive, legislative, and community support for continued investment and growth, indicating potential production beyond 15 million tons.
“We have been here since 2005. And we remain the largest foreign investor in this country since 2005. We have committed and we are delivering. I have been proud of my company and my people,” Chairman Mittal said.
“We need the support of the government, we need the support of the community, we need the support of the Legislature to allow us to continue to invest and grow in Liberia. Our vision is to grow together with Liberia. Our commitment is not limited to 15 million tons, it could be beyond 15. I am very happy with his assurances on the pending issues that will be resolved as soon as possible.”
ArcelorMittal’s Phase Two Expansion is widely expected to bolster Liberia’s mining sector, with projections indicating that iron ore production could double over the medium term and triple by 2030, a commitment to enhancing its operations which is seen as an important driver of national growth.
ArcelorMittal is the largest taxpayer in Liberia and the largest private sector investor with the highest number of employments since the end of war in Liberia.
The recent economic growth potential forecasted by the IMF takes into account companies like AML’s ongoing investments in critical infrastructure—such as railways, port facilities, and the construction of a state-of-the-art ore concentrator in Zolowee, Nimba County. This new investment is helping to pave the way for substantial increases in iron ore production and related economic benefits that can help propel growth.
ArcelorMittal’s Phase Two Expansion is widely expected to bolster Liberia’s mining sector, with projections indicating that iron ore production could double over the medium term and triple by 2030, a commitment to enhancing its operations which is seen as an important driver of national growth.
The company’s investment in the railway from Buchanan to Yekepa, along with upgrades to the Buchanan port, will further support the movement of increased iron ore output, and stimulate job creation, economic growth, and local business activity in the process.
According to the IMF, Liberia’s extractive sector is set to contribute around 30 percent of GDP in the coming years.
From this growth, tax revenue, royalties, and social development funds will increase substantially once the expansion is fully operational.
These revenue streams will provide the Liberian government with millions of dollars annually, which can be reinvested into critical areas like healthcare, education, and infrastructure.
AML’s Mining expansion will also include a commitment to increased social development funds, which will be allocated to support local communities in mining regions, particularly in Nimba County, Grand Bassa and Bong Counties.
Liberia has maintained an average GDP growth rate of 4.7 percent in 2022-23, with a moderate acceleration to 5.1 percent expected in 2024.
Current high-frequency data suggests that the country’s economic fundamentals are strengthening. Inflationary pressures are easing faster than initially anticipated, with inflation projected to reach 6.6 percent by the end of 2024 and to gradually decline to 4.8 percent by 2027.
Stable exchange rates, currently at L$190 per US dollar, are also contributing to favorable economic conditions.
The IMF’s outlook highlights that, beyond mining, growth is expected across various sectors, including agriculture and services, bolstered by improved infrastructure.
Liberia’s economic outlook, bolstered by ArcelorMittal’s substantial Phase Two Expansion and a surge in iron ore production, offers a pathway to increased national income, improved infrastructure, and enhanced public services.
The expected growth in mining will not only drive GDP but also provide the government with crucial funds to invest in social development, fostering a stronger, more inclusive economy.
