Monrovia, Liberia – The government of Liberia has chosen to keep ArcelorMittal Liberia (AML) running the Yekepa-Buchanan railway after months of discussions. The Inter-Ministerial Concessions Committee (IMCC) made the announcement after a prolonged debate on operational accountability and multi-user access for the 243-kilometer rail route.
Under its 2005 Mineral Development Agreement (MDA) with the Government of Liberia, ArcelorMittal inherited the railway, which had been built and run by the Liberian-American-Swedish Mining Company (LAMCO) prior to the Liberian civil war.
ArcelorMittal is currently the only operator of the railway, having committed more than US$800 million in its operation and renovation since then. However, the government was considering hiring an independent rail operator after Ivanhoe Liberia, a division of Ivanhoe Atlantic Inc., expressed interest in using the same railway to transport iron ore from neighboring Guinea.
AML strongly objected to the premise. AML’s status as the official train operator has now been confirmed by the IMCC, citing operational, financial, and legal factors, after months of examination and discussion.
“The IMCC has decided to keep ArcelorMittal Liberia (AML) as the rail operator of the current railway infrastructure in order to preserve legal certainty, investor confidence, and operational stability,” said Jeff B. Blibo, the chairman of the NIC and chairman of the IMCC, in a formal letter to President Joseph Boakai.
Blibo noted that that the following important factors served as the foundation for the decision: The rights and responsibilities that AML has under its current Mineral Development Agreement are still enforceable. A change in operator might put the government at risk of legal action and cause the use of vital infrastructure to be delayed.
According to Blibo, AML has already made large investments in the railway’s restoration. Particularly since the firm intends to increase exports to 20 million metric tons each year by the end of 2025, maintaining AML assists in avoiding operational delays.
In accordance with the Rail Standard Operating Procedure (RSOP), which guarantees non-discriminatory access for all eligible users, including Ivanhoe Liberia, the government said it is still dedicated to a transparent and equitable multi-user access system.
The National Railway Authority (NRA), which will regulate operator performance and access terms, is being established by the government at a rapid pace. Blibo restated the IMCC’s dedication to equitable and open rail governance, saying that the organization is still dedicated to making sure that present and future users of Liberia’s rail system function under a stable, profitable, and open system.
“We also reaffirm our willingness to assist Ivanhoe Liberia in completing its Access and Concession Agreement and facilitating the prompt construction of the Liberty Corridor.”
Blibo also acknowledged the company’s plans to evacuate 2–5 million metric tons of ore annually in Phase I, with a long-term goal of exporting up to 30 million metric tons through its proposed Liberty Corridor. In a separate letter, Blibo thanked Bronwyn Barnes, President and CEO of Ivanhoe Atlantic Inc., for the investment interest.
According to the letter, the government will offer rail access under the RSOP and under NRA supervision, even if AML will continue to be the present operator. In addition, Ivanhoe’s US$10 million pledge to operationalize the NRA was recognized.
The letter affirms that “we are prepared to collaborate with your group to make sure that the feasibility, negotiation, and ultimate construction of this parallel rail line are carried out in a prompt and well-coordinated way.”
For ArcelorMittal Liberia, the biggest employer and private investment in the nation, the ruling represents a significant win. The whole railway infrastructure has been renovated by the corporation without the need for government or other investment.
The installation of a state-of-the-art WabTec rail control system, the construction of new sidings and upgraded level crossings from Buchanan to Yekepa, the acquisition of nine new GE locomotives and 500 wagons, the expansion of all nine railway loops to accommodate 120-wagon ore trains, the complete replacement of timber sleepers with long-lasting steel alternatives, and the reinforcement of the rail bed are just a few of the investments made by AML.
According to AML, these improvements have turned the war-torn rail line into a top-notch mining logistical route that can sustain Liberia’s economic expansion. Many people in Liberia saw this as more than simply a legal issue. The hundreds of people that ArcelorMittal Liberia’s operations feed were personally affected by this.
The announcement was welcomed with fresh hope in communities like Yekepa and Buchanan, where AML’s presence has contributed to the recovery of local businesses. The past several months have been filled with uncertainty for contractors, teachers, youth organizations, and market merchants. Now that government representatives have reaffirmed, there is clarity and comfort.
