—-As Massive Employment Gets Underway
IPNEWS: The Liberian Senate has overwhelmingly passed the Third Amendment to the Mineral Development Agreement (MDA) between the Government of Liberia and ArcelorMittal Liberia (AML), marking a major milestone in the country’s extractive sector and economic development agenda.
The landmark agreement was approved with 20 senators voting in favor and three abstentions, reflecting broad bipartisan support for what lawmakers described as a significantly improved and people-centered concession framework.
During plenary deliberations, several senators praised the revised agreement for addressing past weaknesses, strengthening government oversight, expanding benefits to local communities, and ensuring greater participation of Liberians in the mining sector.
The passage follows years of negotiations between the Government and ArcelorMittal Liberia. Talks began in 2020, leading to an initial agreement in September 2021. However, that version was rejected by the National Legislature in March 2022 over concerns about fairness and national benefits.
After four additional years of negotiations, the Executive Branch returned to the Legislature with a revised and improved agreement, which lawmakers say better protects Liberia’s interests while maintaining a stable investment environment.
One senator remarked during debate that the agreement may not be perfect but represents a strong step forward. He noted that it ensures Liberia gets more value from its iron ore resources while encouraging long-term investment and job creation.
At the center of the new amendment is a strong revenue framework designed to boost government finances and community development. The agreement guarantees an immediate US$200 million signature bonus, payable within 30 days of its effective date, providing a major injection into the national treasury.
In addition, ArcelorMittal will contribute US$5 million annually to a Community Development Fund for Nimba, Bong, and Grand Bassa counties, an increase from the previous US$3 million. The fund will be adjusted annually for inflation and used to support education, health, and infrastructure projects.
The company will also pay US$200,000 annually as an infrastructure oversight fee to support the National Rail Authority in monitoring railroad operations. Mining license fees will rise sharply, reaching US$500,000 per year by 2031, compared to the US$50,000 previously paid for 25 years.
Furthermore, the amendment introduces a 4.5 percent monthly royalty on the FOB Buchanan price, replacing the old quarterly payment system and ensuring faster and more predictable revenue for government.
A major highlight of the Third Amendment is its strong focus on Liberianization of the workforce and management. Under the new agreement, at least 50 percent of management positions must be held by Liberians within one year, increasing to 75 percent in five years and 90 percent in ten years.
Within one year, one of the four top executive positions, including the CEO, CAO, CFA, or COO, must be occupied by a Liberian. The company is also required to give absolute preference to qualified Liberians at all levels of employment.
To further empower local businesses, ArcelorMittal must prioritize Liberian-owned small and medium-sized enterprises for goods and services and establish a joint committee to support and strengthen these enterprises.
Lawmakers described these provisions as a turning point in ensuring that Liberians move beyond manual labor to leadership and technical roles in the mining sector.
The Third Amendment also places strong emphasis on building human capital. ArcelorMittal will provide US$500,000 annually for training and education, including scholarships for students studying geology and mining engineering, with preference for youth from affected counties.
A new campus of the ArcelorMittal Liberia Vocational Training Center will be established in Grand Bassa County, while annual financial support will be provided to the University of Liberia’s Mining and Geology Institute and community colleges in Nimba, Bong, and Grand Bassa.
The amendment mandates major infrastructure improvements that will benefit both mining operations and public transportation. These include repairs to the KM 2.5 Bridge and St. John River Bridge, paving of the concession road in Buchanan, and completion of the Sanniquellie to Yekepa road pavement.
One of the most transformative provisions is the introduction of a multi-user rail system, ending ArcelorMittal’s exclusive control of the railway. The company will upgrade the rail system to 30 million tons per annum and make at least 8 million tons per annum available for approved third-party users.
The government will receive 30 percent of net profits from temporary rail rental arrangements and 100 percent of access fees from other users, creating a new revenue stream while promoting broader mining development.
Environmental protection is another major feature of the new agreement. To safeguard water resources, ArcelorMittal is restricted to using rainwater for mining operations and will pay US$100,000 annually to the Liberia Water and Sewer Corporation for water use at its facilities.
Lawmakers and government officials say the agreement sends a strong message to the international investment community that Liberia is open for business, committed to transparency, and determined to secure fair value from its natural resources.
A senior lawmaker stated that the agreement balances national interest with investor confidence and demonstrates that Liberia can negotiate strong agreements that benefit its people while attracting serious investors.
With the Senate’s approval, the Third Amendment now moves closer to full enactment, pending final processes. Attention will now shift to implementation, monitoring, and enforcement to ensure that the promised benefits translate into real improvements in the lives of Liberians, especially in mining-affected communities.
The passage of the Third Amendment to ArcelorMittal Liberia’s MDA marks a new chapter in Liberia’s mining sector, defined by stronger governance, expanded opportunities for local businesses, increased jobs, higher revenues, improved infrastructure, and sustainable development.
