IPNEWS: High-ranking sources at the National Investment Commission (NIC) have exclusively disclosed to the authoritative Independent Probe Newspaper that the government of Liberia is in the final stages of concluding a landmark deal with ArcelorMittal Liberia (AML). The agreement, an amendment to AML’s Mineral Development Agreement (MDA), is set to be forwarded to the legislature for review and ratification.
According to a recent publication by a local daily, the government has been pushing aggressively for greater benefits for Liberia, including increased financial contributions, job creation, and enhanced county development programs. “They are really pressing the company hard to secure even greater benefits for Liberia,” said one source. “The negotiators want more money to be paid annually, more jobs, and a larger share of revenue for the affected counties.”
Economic Transformation and Job Creation
One of the most significant aspects of the expansion deal is its potential to stimulate Liberia’s economy. The Phase II expansion will bring an additional $1.4 billion in foreign direct investment, making it the largest post-war investment in Liberia’s history, following the $1.7 billion already invested by AML since 2005.
The deal will also deliver a major boost to Liberia’s job market, with 2,000 new jobs expected to be created during the construction of AML’s new concentrator plant. Once operational in 2025, the plant will generate 1,200 permanent skilled jobs for Liberians. To ensure Liberians are equipped for these positions, the agreement includes training programs designed to develop a skilled workforce capable of operating the complex concentrator technology. This initiative will provide long-term employment opportunities, benefiting thousands of young Liberians.
More Funds for County Development
The leaked details indicate a major improvement in the County Social Development Fund (CSDF). Under the amended agreement, AML’s annual contributions to the CSDF will increase to $3.5 million, benefiting Bong, Grand Bassa, and Nimba counties.
Previously, only 20% of the CSDF was allocated directly to community-selected programs, with the remainder being managed centrally. Under the new deal, however, 100% of the CSDF contributions will be directed to the counties, giving local authorities greater control over how the funds are used. This change opens up opportunities for substantial investments in infrastructure, healthcare, education, and other essential services. The government is reportedly negotiating for even higher contributions to further strengthen local development efforts.
Multiuser Rail and Port System
The agreement also reinforces Liberia’s control over its railway and port infrastructure. The government remains the sole owner of the railway and port, while the amendment establishes a framework for multiple users, including Guinean mining companies, to access Liberia’s transport corridor.
One of the most critical provisions of the deal ensures that AML will operate the railway on a cost-recovery basis, meaning it will not make a profit from other users. Instead, any additional users will pay a transit fee directly to the Government of Liberia. Additionally, foreign companies seeking to utilize the infrastructure will be required to invest in expanding rail and port capacity, a move that will further enhance Liberia’s trade and logistics capabilities.
Boosting Government Revenue
The new deal is set to significantly increase government revenue. Currently, AML contributes between $30-40 million annually in royalties, taxes, and duties. The expansion is expected to push this figure to approximately $75 million annually, and after full ramp-up of Phase II, the government could receive up to $200 million per year.
Liberia’s iron ore production is also projected to triple under the expansion, increasing from the current 5 million tons per annum (mtpa) to 15 mtpa of high-value concentrate. The agreement also lays the foundation for a future expansion to 30 mtpa, which would firmly establish Liberia as a major iron ore producer in West Africa.
Community Development and Healthcare Support
Government sources indicate that additional community benefits are being secured under the amended agreement. AML has already invested over $48 million in community initiatives, including training programs in agriculture, cosmetology, literacy, and furniture-making. The government is pushing for even more investment in direct community support, particularly in education and healthcare.
Currently, AML operates two hospitals and two clinics in Buchanan and Yekepa, serving nearly 30,000 patients annually. More than 60% of these patients are from local communities. AML has also compensated farmers with over $24 million for crop losses and resettlement due to mining operations. The government is now negotiating for additional compensation, increased funding for health services, and broader support for local schools.
Final Push Before Ratification
The NIC sources emphasized that the government is making a final push to maximize Liberia’s benefits before sending the deal to the legislature. “This expansion is not just about mining,” one source stated. “It represents a transformative opportunity for economic growth, job creation, infrastructure development, and social progress.”
As Liberia awaits the next steps, attention will turn to the legislature, which must ensure that the final agreement secures the best possible outcome for the country—avoiding the pitfalls of past negotiations and setting a new standard for responsible resource management.
With this deal nearing completion, Liberia stands on the brink of a historic economic transformation that could redefine its mining sector and elevate the country’s standing in the global iron ore market.
