Nimba County Senator Nya D. Twayen has opposed the passage of the third Amendment of the ArcelorMittal Mineral Development Agreement (MDA), which the Senate passed in concurrence with the House of Representatives, stating that the deal will pave the way for long-term investment in the country’s mining sector.
The Senate’s was based on a report from the joint House Committee on Mines, Investment, and Judiciary, which reviewed the proposed amendment and recommended its approval.
The Senate’s concurrence with the House on the instrument is expected to unlock about US$200 million as a signature bonus once approved by the president.
Speaking with legislative reporters, Senator Twayen said his decision to “abstain” from voting on the proposed third Amendment to the ArcelorMittal Mineral Development Agreement was not motivated by malice, hostility to investment, or opposition to economic growth, but guided by history, evidence, and his responsibility as the lead senator on concession compliance over the past two years during which time ArcelorMittal Liberia documented record of noncompliance with key obligations under the existing MDA, particularly with respect to social commitments to affected communities.
He said history cannot be ignored simply because new assurances are offered, and abstention, in this context, was a deliberate position of caution and accountability to send a message to AML that “we are serious about full implementation of all clauses and commitments in the agreement.”
Senator Twayen said during a discussion after the House of Representatives passed the Amendment, sustained advocacy from his office and other colleagues produced tangible outcomes in the interest of the Liberian people, especially the people of Nimba County.
“Through this process, the Inter-Ministerial Concessions Committee and ArcelorMittal agreed to correct several critical omissions and weaknesses in the proposed amendment. These include explicit social benefit commitments such as the pavement of the Sehyikinpa to Yekepa road, improvements and upgrades to roads within the concession area, construction and maintenance of bridges, and enhanced investment in clinics and schools within affected communities,” he said.
According to him, their advocacy from day one of taking this office also compelled the renegotiation of the financial terms of the agreement, efforts resulted in a 200 million United States Dollar signature fee, an increase in annual mining license fees from $ 50,000 to 5000,000, and an increase in social development contributions from USD$3 million to US$5 million annually.
He said these are not symbolic gains; they are material improvements secured through persistence and scrutiny and policy advocacy and they insisted on the proper consolidation and restatement of the existing MDA and the third Amendment, including the insertion of clear termination and revision clauses; provisions that would have allowed automatic extensions of the concession after twenty five years were removed and replaced with language subjecting any renewal to legislative ratification.
“This restores the constitutional role of the Legislature and protects the long-term interests of the state. Importantly, the IMCC and ArcelorMittal formally acknowledged clerical and substantive errors in the amendment, including the omission of Nimba County from the social obligation provisions. We demanded and received written commitments, including attached correspondence from both the Executive and ArcelorMittal, confirming that these obligations will be corrected and implemented even though we remain skeptical,” the Nimba County senator said.
“Our vigilance has already produced results and we are grateful to the leadership of the Senate and other colleagues who have given us the benefits of doubt when making our case; thanks to the IMCC as well for reasoning where necessary; as I close let me hasten to say that sustained oversight will determine whether those results translate into real benefits for affected communities; the people of Nimba and the people of Liberia,” he noted.
