The joint legislative committee of the 54th Legislature rejected the ratification of a 25 year renewal of Arcelormittal’s Concession Agreement on grounds that the company contravenes the Mining Law of 2000. The joint committee in their 2023 report indicated that the previous Mineral Development Agreement according to Article 1(1.7); Article IV (2) defines AML’s concession area as former LAMCO concession area instead of the production areas declared by the concessionaire.
Therefore, the committee recommends that to resolve this confusion, the definition of the Concession Area be restated as contained in the 2000 Minerals and Mining Laws of Liberia. They suggested that the agreement cannot be renewed until it is amended to consider concession area to mean the production areas declared by the concessionaire.
According to the joint committee, “Pursuant to the 2000 Minerals and Mining laws, the undeclared portion of the LAMCO concession area should be deemed as reverted to the government of the Republic of Liberia.” The committee further suggests that Buchanan Iron Ore Port, which have not been transferred but have been made available for use in the operations of the concessionaire on the terms and conditions set forth remains the property of the Government of Liberia and shall be free for transfer to any potential investors.
The committee stressed that expansion of the port or railroad by another user is impossible until 2034 and very difficult to envisage thereafter because AML will develop the railroad system operating principles and develop the multi user rail agreement without any input from other users or potential users, which mean any other user, will be forced to comply with AML’s rules.
“There is no effective timely remedy if AML decides to favour its own operations and discriminates against other users,” they observed. The committee further recommends that the activities of the concessionaire shall be subject to the applications of the new land rights law and the laws on commercial use of water for the operations of the concession and that Mittal’s operations be subjected to payment of fees and other levies including port user’s fees.
They reported that it is critical for the proposed amendment to ensure that key infrastructure assets are rehabilitated and expanded to proper modern international standards and managed in accordance with best international practice including environmental and social principles which will safeguard the interests of Liberia and its people.
The Committee noted that Arcelormittal had previously committed to the construction and renovation of 1800 houses as indicated in its 2005 Mineral Development but unfortunately, AML has renovated or constructed less than 300 houses of the total 1800 houses. “That the National Housing Authority be authorized to draw up a housing unit plan to be used by AML for the construction of 1800 housing Units. The concessionaire shall provide support such as instructional and learning materials to schools within the affected communities separate from the contributions to the community college,” the committee recommended.
They lawmakers also want AML to recruit at least ten persons from each affected communities and train them as the company is planning to expand its operations so that youths and other citizens from these affected communities and counties are qualified for the jobs. The concession agreement is still languishing at the Legislature because lawmakers want an allocation of 50 percent of all unskilled and semi-skilled jobs in the concession area to people from the affected communities in the amended agreement before ratification.
‘And that recruitment by AML and all contractor companies that work for AML must be done in Yekepa and Buchanan if operations are located in Bassa, Bong, and Nimba. AML must recruit from affected communities, mostly youths; train them to serve them and serve in the AML administrative and managerial positions and also provide job opportunities for affected communities where its operations are,” the report indicated.
The Legislative Committee frowned that the Government of Liberia will lose the right to undertake expansion of the port or rail infrastructure at its option if AML refuses to do so, a right it has under the current version of the MDA.; adding “This equates to a complete loss of Liberian sovereignty over Liberia’s own infrastructure assets, to the significant detriment of Liberia, the Liberian people and other users.”
The proposed amendment as written by AML is highly disadvantageous to a poor struggling country Like Liberia, the committee observed thus recommending that the proposed amendment should ensure that other users’ access to the Liberian infrastructure assets is protected to allow Liberia to fully realize the economic potential of these assets and provide the Liberian people with greater job opportunities.
Moreover, the committee said AML should assist with repairs of 2.5 km bridge that connects Buchanan City Center to the Loop as part of its social contributions to Grand Bassa County and pave the road from it Concession area to Buchanan City via Robert Street and not motor grading to be pliable seasonally.
“A pavement is the best solution. That AML construct the St. John River Bridge that connects Bong and Grand Bassa Counties as part of its social contributions to the affected counties. AML should provide streetlights in the communities, safe drinking water and avoid fetching water from open wells and construct pit latrines in and around the communities,” the committee further recommends.
In recent times, Nimba County Senator Nya D. Twayen raised a ‘red flag’ over a proposed amendment to ArcelorMittal Liberia (AML) Mineral Development Agreement (MDA), warning that it could grant the company control over Liberia’s national railroad system and Buchanan Iron Ore Port.
