The Liberian Senate has concurred with the House of Representatives on Ivanhoe Atlantic’s Concession and Access Agreement (CAA), granting both development rights and guaranteed access to Liberia’s multi-user rail and port infrastructure. The Senate ratified the agreement late Thursday, 19 December. The concurrence votes followed the ratification of the Deal by the House of Representatives last week.
The ratified Concession and Access Agreement provides access for Ivanhoe Atlantic Inc. to transport its ultra-high grade iron ore (>67% Fe) from its Kon Kweni project in Guinea, part owned by the Government of Guinea, to the Liberian Port of Buchanan using the Liberian Government owned Yekepa-Buchanan Rail Line.
With the Agreement ratified, Ivanhoe Atlantic is now focused on progressing its development program. The required environmental impact assessments have been submitted in Guinea and Liberia and are undergoing regulatory review with construction intended to commence in Q1 2026. Ivanhoe Atlantic, a U.S. mining company has congratulated President Joseph Boakai, the House of Representatives and Liberian Senate for the formal ratification of Ivanhoe Atlantic’s Concession and Access Agreement.
A press release issued by Ivanhoe Atlantic said the Agreement provides final government approval to its subsidiaries Ivanhoe Liberia Ltd and Société des Mines de Fer de Guinee SA to transport ultra-high grade iron ore from the Kon Kweni project in Guinea to the Port of Buchanan using the existing Yekepa-Buchanan Heavy Rail Line.
The project is part owned by the Government of Guinea and is expected to generate US $16.7 billion for the Guinean government in its lifecycle in royalties, taxes and development fund contributions. According to the release, ‘This critical project milestone is the culmination of six years of work by Ivanhoe Atlantic and the Government of Liberia. This includes the 2019 Implementation Agreement between the Government of Guinea and the Government of Liberia which approved the legal and institutional framework for cross-border transport of minerals.”
Bronwyn Barnes, President of Ivanhoe Atlantic, said “The ratification of our Agreement by the Liberian legislature is fully in line with President Boakai’s policy to transition existing Liberian rail infrastructure to multi-user, independently operated system and marks a significant milestone, not just for Ivanhoe Atlantic but for Liberia. This opens up a valuable logistics chain to other users in Liberia and neighbouring countries, including U.S. aligned companies looking to expand into the region. After more than twenty years, Liberia stands to fully benefit from its own infrastructure, laying the foundations for an expanded critical independently operated multi-user infrastructure corridor connecting West Africa to the Atlantic Ocean.”
Barnes expressed gratitude for President Boakai’s leadership and deep commitment to ensuring that Liberia realizes the full economic and social value of its infrastructure.
“I look forward to working in partnership with the Liberian Government, the soon to be enacted National Railway Authority, and the independent rail operator when they are selected by the Liberian Government. These strategic changes to the way that Liberia manages its critical national infrastructure will deliver generational benefits for the people of Liberia, and will clearly deliver strong financial benefits from multiple future rail-users,” Barnes said.
Having in place a confirmed logistics route with a clear technical and financial operating framework brings Kon Kweni a step closer to construction as Ivanhoe Atlantic now focuses on finalizing all remaining environmental approvals with both governments in Guinea and Liberia, continue engagement with the Government of Guinea, including through a jointly established Technical Committee to oversee and advance the technical preparation for construction activities and support the Government of Liberia through the formation of the National Rail Authority (“NRA”), responsible for overseeing the Government appointment of an independent operator for the Yekepa – Buchanan railway.
Ivanhoe said to ensure that the Project is realized, it will finalize arrangements with the current rail user/operator and the Government of Liberia to ensure smooth and efficient access to the rail and port infrastructure in the lead up to independent rail operatorship in 2030. On August 19, 2021, the Government of Liberia, through the Ministry of Transport, granted SMFG/Ivanhoe a conditional Right of Access for export of Guinean iron ore through Liberia. After negotiations, the IMCC and SMFG/Ivanhoe signed the CAA, which received attestation from the Ministry of Justice and subsequently approved by the President and submitted to the Legislature for ratification.
The CAA grants SMFG and Ivanhoe Liberia Limited a 25-year right to transport iron ore from Guinea through Liberia using the existing rail line and the Port of Buchanan. Concessionaires are required to upgrade rail capacity and improve the Buchanan Commercial Quay to support safe, multi-user operations. According to the report, Liberia will serve as a transit route for industrial goods destined for Guinea.
Additionally, the agreement provides for 1.5% customs user fee on imports (CIF-based) and US$500,000 annual customs transit fee Infrastructure Investments Ivanhoe Atlantic has already contributed US$37 million to the Liberian Revenue Authority via payments to the Central Bank of Liberia. Once the CAA is ratified by both houses of the Legislature, Ivanhoe Atlantic will make US$35 million in direct payments to the Central Bank via the following Concession Payments.
In accordance with the CAA, “US $1 million will be paid within 10 business days after it has been signed by the President and published on the gazette. US$10 million within 10 business days after the date the agreement takes effect. US$15 million on the date Ivanhoe Atlantic commences operations on the railway.US$2.33 million on the date the NRA Act is enacted. US$3.33 million on the date the Independent Operator is appointed by the NRA; and US$3.33 million on the first anniversary of the appointment of the Independent Operator.”
The CAA also includes the establishment of a Community Development Fund (CDF) to support communities along the railway in Nimba, Grand Bassa, and Bong. Ivanhoe Atlantic has committed annual payments starting at US$1 million, raising consecutively to US$5 million annually in five years. This will be contributed annually throughout the decades during which Ivanhoe will transit high-grade iron ore through Liberia. In addition to the concession payments and CDF, Ivanhoe Atlantic will invest nearly US$1 billion in Liberia across two phases, making it one of the largest infrastructure investments in the country’s modern history, focused entirely on road, rail and port systems.
In Phase 1, Ivanhoe Atlantic will invest US$64 million to build roads leading to the railway and rehabilitate the existing track and port infrastructure. Target production capacity once the infrastructure development is completed is 2–5 metric tons per annum (mtpa) of high-grade iron ore. Phase 2 will see an additional US $888 million invested in direct capital costs, split between an estimated US$452 million railway upgrade and US $436 million to expand the Buchanan Port. The work is projected to expand capacity to accommodate Ivanhoe Atlantic’s target export capacity of 30 mtpa, pending feasibility studies, and regulatory approvals. Approximately US $800 million will also be invested in Guinea to connect the countries’ trade corridor.
The investment and concession payments granting Ivanhoe Atlantic user-access to the railway will generate approximately US$60 million of revenue per year for Liberia in rail user fees, dividends, taxes, and other sources of revenue generation. In addition to the financial investment, Ivanhoe Liberia will hire 500 people in Phase 1 of the project and create an estimated 3,000 indirect jobs through domestic suppliers and service providers. With the ratification of the agreement, Liberians will benefit from this critical national asset, driving broader economic growth in sectors across mining, agriculture, freight, manufacturing, health, and education, observers believe.
