Nimba County Senator Nya D. Twayen has criticized Arcelor Mittal’s US$1.9 billion concentrated plant, part of its Phase II expansion, which is expected to increase Liberia’s annual iron ore output from 5 million to 20 million metric tons.
During a press briefing for legislative reporters on Tuesday, June 10, 2025, Senator Twayen stated that the highly anticipated plant is not a true investment for Liberia, as it can be dismantled at any time by Arcelor Mittal Liberia. Unlike the plants constructed by Mittal in Brazil and other countries, which are built with steel and concrete, the facility in Nimba County is made of prefabricated iron and screws, designed to last only for the duration of Arcelor Mittal’s investment.
“This disqualifies the infrastructure as a genuine investment in Liberia, serving only as a means to enrich Arcelor Mittal. Furthermore, the costs have been exaggerated; sources we’ve consulted at Arcelor Mittal Liberia indicate that the plant probably costs no more than $550 million. This is yet another example of Arcelor Mittal’s overstatement of expenses to avoid paying proper taxes and dividends,” Senator Twayen said.
He also remarked that investing $1.8 billion in a location with insufficient road infrastructure makes little sense. He noted that the Legislative Caucus of Nimba County was not invited to the plant’s dedication, a decision he believes stems from the strong stance the Caucus has taken recently. Despite this, he assured that the Caucus would continue to express its views and opposition regarding the renewal of the mineral development agreement.
The lawmaker mentioned that the company is utilizing “transfer pricing” to evade declaring profits, which would benefit Liberia through tax dividends as per the mineral development agreement (MDA). He explained that this practice involves setting prices for goods and services exchanged between related entities that do not reflect market value, thereby reducing the reported profits in Liberia and, consequently, the dividends owed to the government under the MDA.
Senator Twayen also addressed the “blatant disregard for Liberian senior management inclusion” stated in Article 10 of the 2007 MDA Amendment. He asserted that the company has not met the stipulated 50% quota for Liberian senior management. According to the amended MDA, by 2012, 25% of senior management positions should have been held by Liberians, and this should increase to 50% by 2017. Additionally, within one year (by 2008), the company was required to appoint a Liberian to one of the top three management positions (CEO, CFO, or COO).
To date, all three top executives of Arcelor Mittal are foreign nationals: CEO Michiel Vandermerwe (South Africa), COO Anthony P. Kocken (Australia), and CFO Conor O’Brien (Britain).
“This is not just a breach of contract; it is a slap in the face and a gross disregard of professional Liberians. The framers of the MDA intentionally specified that a Liberian must occupy one of these decision-making roles. Arcelor Mittal’s refusal to comply shows blatant disregard for Liberian law and the empowerment of its citizens,” he stated.
Senator Twayen pointed out that the senior management level includes 19 total positions, and by 2017, 50% of these roles should have been filled by Liberians. Currently, only 42% (8 out of 19) are held by Liberians. He noted that the company continues to employ foreigners in positions where qualified Liberians exist, such as Chief Information Officer, Chief Purchasing Officer, Security Risk Advisor, and Chief of Staff to the CEO.
He further expressed concern about the hiring of foreigners in mid-level technical roles (e.g., Truck Maintenance Foreman, Welding Supervisors) who report to Liberians. He questioned why these positions are not filled by Liberians when they are evidently capable.
In light of these ongoing failures, Senator Twayen strongly recommends that the Government of Liberia, through the Inter-Ministerial Committee on Concession (IMCC), take the public’s demands from Nimba seriously. He stated that Arcelor Mittal should commit to paving the Sanniquellie-Yekepa road as a binding line item in any new MDA, increase the Social Development Fund allocated to Nimba and affected counties, cease the construction of containers, and instead focus on renovating homes in Yekepa.
Additionally, he called for a non-negotiable clause mandating the appointment of at least one Liberian among the top three executive leadership positions, pay the arrears owed to the scholarship fund to allow the awarding of scholarships to more students, and establish a transparent, monitored fund for scholarships and community development to ensure Arcelor Mittal meets its social obligations. He also suggested quarterly progress audits of Arcelor Mittal’s compliance with the MDA be conducted and made publicly available for review by the Legislature and affected communities. According to him, Liberians should not be swayed by headlines touting “billion-dollar infrastructure” without examining the realities behind such ventures.
