There has been considerable discussion about new entrants seeking access to the Yekepa–Buchanan railway; a vital artery connecting Liberia’s mineral-rich east to the Atlantic Coast. But what exactly the latest player on the scene, Ivanhoe Liberia promises to deliver seems to be great as the country stands to benefit from employment opportunities. Ivanhoe Liberia is the local subsidiary of United States based Ivanhoe Atlantic.
The 245km Yekepa–Buchanan railway and Buchanan Port are the backbone of Liberia’s export infrastructure, providing a shorter and more cost-effective route to global markets than alternatives through neighboring Guinea. Ivanhoe Liberia has set out an ambitious plan to revitalize and expand this corridor. The project is expected to improve the country’s strategic advantage by positioning Liberia as a key trading hub in West Africa.
Ivanhoe Liberia’s Concession and Access Agreement (CAA) has been sent with support from President Joseph Boakai to the Legislature, where it is currently being deliberated. This follows over six years of negotiations with the Inter-Ministerial Concessions Committee (IMCC) on the terms of the agreement, including with the previous administration of former President George Weah.
Ivanhoe Liberia’s three-phase operation represents one of the largest infrastructure investments in the country’s modern history, focused entirely on rail and port systems. Phase one alone brings an estimated US$64 million investment for the rehabilitation and operational readiness of the existing railway and port infrastructure. Concession and other milestone payments after ratification will total US$35 million.
Additionally, Ivanhoe Liberia will also contribute millions more in community development contributions to impacted communities in Nimba, Bong and Grand Bassa counties. According to an informed source, phase two expansion will see an additional US $888 million in direct capital costs, split between an estimated US$452 million railway upgrade and US$436 million expansion of Buchanan Port. The infrastructure development will increase capacity on the railway to support the transportation of 30 million tons per annum (mtpa) of iron-ore from the Kon Kweni Iron Ore Project.
The investment will include the construction of 22km of dedicated haul roads, new bypasses, rail spurs, and commercial quay mobilization at Buchanan. These commitments approach over a billion dollars in direct investment, promising to create hundreds of local jobs and to establish a robust platform for multi-user, multi-commodity growth across Liberia. Ivanhoe Liberia has already made an access deposit of US$37 million to the Government of Liberia through the Central Bank between 2019 to 2022.
In 2022, Ivanhoe was recognized by the Liberia Revenue Authority (LRA) as the second largest overall revenue contributor in Liberia. The concession and milestone payments currently before the Legislature as contained in Ivanhoe Agreement include: US$1 million within 10 business days after President Joseph Nyuma Boakai, Sr. signed the CAA; US$10 million within 10 business days after the date the CAA takes effect.; US$15 million upon unimpeded physical access to rail and port infrastructure; US$2.33 million on the date the National Rail Authority (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. According to the agreement, these concession payments will be supplemented by dividends, taxes, and duties that Ivanhoe Liberia will also pay throughout its use of the railway and port, excluding infrastructure investments.
Supporting Neighboring Communities
A Community Development Fund will be established to provide support to communities along the railway in Nimba, Grand Bassa, and Bong counties as Ivanhoe Liberia has committed to annual payments starting at US$1 million, raising year-on-year for five years to US$5 million annually. The railway giant has also completed environmental and social impact studies (ESIA) and submitted permit applications to the relevant authorities in both Guinea and Liberia. These outline the steps the company will take to ensure that the ecosystem around its operations remain places where families, businesses and the natural environment can live and thrive.
Commitment to Local Content
Ivanhoe Liberia has also committed to hiring and training Liberians first, with 500 direct jobs expected in phase one across construction, haulage, ore handling, port operations, health and safety, and engineering and an additional 3,000 indirect jobs are anticipated in sectors such as waste management, border security, hospitality, healthcare, transportation, and more.
Benefits of a Multi-User System
By decoupling the railway’s future from the life cycle of a single mine, the Government of Liberia will be able to secure long-term economic value that extends beyond mining. The expanded transit network is expected to stimulate growth in agriculture, manufacturing, health, and education, Ivanhoe has assured. A Bilateral Implementation Agreement (BIA) between Guinea and Liberia that was ratified in 2021 made this all possible. It was drafted in alignment with the African Mining Vision and the principles of economic integration adopted by the Economic Community of West African States (ECOWAS) and Mano River Union (MRU).
The Boakai Administration’s push for a multi-user rail system marks a historic step towards unlocking Liberia’s economic potential. Opening the Yekepa–Buchanan corridor to multiple users will transform it into a national growth engine, creating jobs, attracting investment, and stimulating growth for all Liberians. The system will connect Guinea’s iron-ore rich Nimba region to global markets via the Buchanan Port, further cementing Liberia’s role as a regional trading hub. Ivanhoe Atlantic’s multibillion dollar investment into Liberia, the largest U.S. private investment in Liberia to date, will set the stage for a rail and port system that is accessible to more users, signaling renewed confidence in the country’s economic landscape and future.
