The Joseph Nyuma Boakai administration has echoed its unwavering support for Ivanhoe Atlantic’s access to the Yekepa-Buchanan Railway. A hearing hosted by the House Specialized Committed headed by Representative Foday E. Fahnbulleh, was attended by Deputy Minister of Justice for Economic Affairs, Charles Karmoh along with Deputy Minister for Administration at the Ministry of Foreign Affairs, Gabriel H. Salee, and representatives of the National Investment Commission (NIC).
The House Specialized Committee invited the relevant government officials to provide clarity on the 2021 Implementation of Access Agreement (IA) between Liberia and Guinea. The Committee sought to understand the legal ramifications of the IA signed between Liberia and Guinea in 2019 and ratified in May 2021. The agreement governs the framework for cross-border use of rail and port infrastructure, a key component of bilateral economic cooperation.
The IA between Guinea and Liberia provides a framework built on cross-border cooperation for Ivanhoe Liberia’s Concession and Access Agreement (CAA), which is currently being considered by the Legislature. Led by Deputy Justice Minister Karmoh, the Ministers provided clarity to the Joint Committee on Investment & Concessions, Judiciary, and Transport on the level of compliance, and ensured that should Ivanhoe Atlantic’s CAA pass, Liberia remains fully aligned with the terms of the IA.
What Is the Implementation Agreement (IA)?
The IA is a treaty between Guinea and Liberia to regulate how mining operators from Guinea can use Liberia’s infrastructure—mainly its railways and ports—for the transportation of mineral resources.
The agreement also outlines rules and procedures for access to Liberia’s transport systems and sets out the rights and responsibilities of both the governments and the mining companies involved. Its objective is to stimulate cross-border trade by allowing Guinea’s mining industry, which is landlocked in certain regions, to access international markets via Liberia’s rail and port infrastructure. In exchange, Liberia benefits from economic cooperation and development projects tied to these cross-border activities. The most efficient route is the Yekepa-Buchanan Railway that cuts through the Nimba and Bong regions, terminating at Buchanan Port.
Key Elements of the Agreement: Access to Infrastructure is on Equal Terms
The IA establishes that Guinea’s mining operators will have access to Liberia’s transport infrastructure on equal terms as Liberian operators. This means that Guinean mining companies should not be discriminated against based on their nationality or the origin of the products they transport. The IA does not require one country to seek formal approval of the other before making decisions. It also respects the sovereignty of both states.
Liberia, for instance, has the right to ratify agreements without Guinea’s approval and vice versa. This ensures that the legislative and executive processes in both countries remain independent.
There is a Clear Process to Define Eligibility and Permit Access
Mining operators who wish to use Liberia’s infrastructure must submit requests to the Government of Liberia. These requests determine whether they meet the necessary criteria to use the infrastructure. The request currently being considered is Ivanhoe Atlantic’s CAA. The IA is clear that these requests should be reviewed by the respective governments in a separate process, not jointly by both governments.
The IA’s emphasizes cooperation between the two countries, while upholding sovereignty. Both countries retain full sovereignty over actions taken within their borders. For example, Liberia makes the final decision regarding access to its rail and port infrastructure, and Guinea makes the final decision on whether a mining operator meets its eligibility criteria.
Inter-Ministerial and Monitoring Committees (IMMC) have a Defined Role
Inter-Ministerial and Monitoring Committees (IMMC) have been set up under the BIA to assess progress and collaboration. They are responsible for resolving disputes that might arise between the two countries or mining companies. They also ensure that the IA’s terms are followed and that technical matters between the two countries and the users, such as customs procedures and border crossings, are handled smoothly. They have no mandate to review, approve or revoke decisions made by either Government.
About Ivanhoe Atlantic’s Concession and Access Agreement (CAA)
Ivanhoe Atlantic’s CAA is a follow-up agreement that builds on the BIA. It sets out the specific terms under which mining companies, particularly Societe des Mines de Fer de Guinee (SMFG) – a joint venture between Ivanhoe Atlantic and the Government of Guinea – will access Liberia’s infrastructure.
The CAA does not create new cross-border rights. It implements the access rights outlined in the IA. It ensures that the concessionaires have the legal right to use Liberia’s rail and port systems, subject to the country’s domestic laws and regulations. The CAA will grant access for SMFG to use the Yekepa-Buchanan railway for cross-border exports.
Ivanhoe Atlantic’s CAA Will Set the Standard for Other Rail Users
The IA represented an important step forward in the cooperation between Guinea and Liberia. It establishes a clear framework for the shared use of infrastructure and sets out the rules for the equal treatment of Guinean and Liberian mining operators. At its core, the IA seeks to promote economic cooperation, foster employment opportunities, reduce barriers to cross-border trade, and create more efficient transportation networks for the mining industries in both countries.
The IA underscores the importance of cross-border collaboration in line with the African Mining Vision and the principles of economic integration adopted at the Economic Community of West African States (ECOWAS) and Mano River Union (MRU) – while respecting each country’s independence. If the terms of the IA and Ivanhoe Atlantic’s CAA are honored, both countries stand to benefit from this historic partnership. It sets the stage for future users from multiple industries, not just mining, to take advantage of access to this strategic trade route.
The CAA is an enabling agreement that will shape the future of both countries, facilitating development and growth, creating jobs in both markets, and improving regional trade and infrastructure connectivity. The treaty was written to be win-win and to create a climate where investors can create opportunities in both countries. Ivanhoe Atlantic’s CAA may be the first to do so when ratified, while more concessionaires and their investments will follow.
