Liberia Mining Conundrum!.
Research by: Charles B. Bioh, BSC Candidate, Human Resource Management
Adventist Lay University of Kigali (UNILAK), Rwanda.
Abstract.
Liberia, rich in resources, it has over the years remained the hub for mining activities! This paper examines the impact of mining agreements on Liberia’s future, considering the positive and negative impacts.
In the paper, the researcher presents recommendations on the measures the Liberian government should take to address the impacts.
Introduction.
Iron ore deposits in Liberia have attracted numerous mining companies, including ArcelorMittal Liberia, which is currently operating in the country. However, the impacts of the mining agreements on Liberia’s future have remained debatable.
Positive Effects.
1. ArcelorMittal Liberia has generated over $400 million in revenue for the government since 2005, with over $120 million in royalties and $148 million in withholding taxes paid between 2022 and 2025.
2. ArcelorMittal Liberia has created over 2,100 direct jobs and over 5,300 indirect jobs, thus contributing to the country’s economic growth and poverty reduction.
3. ArcelorMittal Liberia has invested over $48 million in community development initiatives, funding various activities such as agriculture, literacy, health, and vocational training.
4. ArcelorMittal Liberia has renovated the Buchanan-Yekepa
Negative Effects
1. Liberia has a tendency of dealing with foreign companies in favor of corporations.
2. Foreign companies dominate the mining sector with minimal Liberian participation in processing the mined minerals.
3. There are concerns over environmental impacts due to mining activities in Liberia, such as deforestation and water pollution.
4. Liberia institutions are not effective in regulating the mining sector or in the collection of revenues.
Recommendations
1. Liberia should renegotiate the contracts with foreign companies.
2. Liberia should ensure there is a significant role played by Liberians in the mining sector.
3. Liberia institutions should be able to regulate the mining sector as well as collect revenues.
4. Liberia should diversify its economy.
Conclusion.
The future of Liberia mining sector depends on the government’s ability to balance economic development with social and environmental considerations.
References.
1. ArcelorMittal Liberia. (2022). Annual Report.
2. Extractive Industries Transparency Initiative (EITI). (2022). Liberia Report.
3. World Bank. (2020). Liberia Economic Update.
4. Ministry of Finance and Development Planning. (2022). Liberia Budget Report.
5. The New Dawn. (2022). ArcelorMittal Liberia Generates Over $120m in Royalties.
6. FrontPage Africa. (2022). ArcelorMittal Liberia Invests $48m in Community Development.
7. African Development Bank. (2020). Liberia Infrastructure Report.
8. International Monetary Fund. (2022). Liberia Staff Report.
9. ArcelorMittal. (2022). Sustainability Report.
