Or HPX wants to move its Guinean ore through Liberia for just transit costs and has not yet made any sizable direct investments.
Monrovia, Liberia – As HPX and its partner aggressively pursue their quest for access and control of the rail from Buchanan to Yekepa, the struggle for control of Liberia’s railway infrastructure intensifies. Approximately US$800 million has been invested in the railway’s restoration by ArcelorMittal Liberia, the company that now runs it. But without making a similar financial commitment, HPX is requesting exclusive access, which ArcelorMittal Liberia claims is against the country’s long-term economic interests.
The Mineral Development Agreement (MDA), which was originally modified in 2007, according to AML, has always allowed for joint port and railroad access. Guinean mining organizations, especially Société des Mines de Fer de Guinée (SMFG) and Sable Mining, are showing interest in the rail, although no Liberian mining business has applied for access.
With the current power struggle for the rail, the question is; “WHAT IS HPX FINANCIAL CONTRIBUTION FOR THE REFORBISH RAIL FROM BUCHANA TO YEKEPA?”
Speaking to a citizens from Nimba and Grand Bassa counties, Mr. David Bayogar and Mr. Edward Gbanga stressed that HPX have to find another way to transport their goods if accepted by the Liberian government or work in collaboration with AML. In their views, ArcelorMittal Liberia have made tremendous contribution to the rail system within the two counties, as such, AML should not be taken for granted.
The Liberian citizens called on the government of Liberia to look carefully into the concession agreement of HPX to save the country from further embracement. In the appeal to the government, they also request the government headed by President Boakai to properly investigate HPX and its’ associates before getting into agreement.
A 2019 intergovernmental agreement between Liberia and Guinea permitted restricted third-party access, restricting transit at five million tonnes per annum (mtpa), defying allegations that AML has monopolized the railway. But now, HPX and Ivanhoe Liberia are requesting rights for an unprecedented 20–30 mtpa, which is far more than AML can produce. Although it accepts third-party users, AML contends that they must adhere to operational, logistical, and investment requirements standards that HPX and previous applicants have not met.
Negotiations with third-party users have failed in the past, which is the root of the current conflict. AML and BHP, SMFG’s previous owner, looked at a joint venture in 2010 to develop the Nimba iron ore resources, which straddle Guinea and Liberia. Due to differences over value, that acquisition fell apart. Ellen Johnson Sirleaf, the president of Liberia at the time, supported AML’s later 2013 attempt to purchase SMFG from BHP.
However, the deal was vetoed by Guinean authorities under President Alpha Condé, who preferred a collaboration with Rio Tinto to build the Trans-Guinean Railway. Due to an unknown infrastructure load, AML pulled out of the agreement.
Sable Mining also applied for railway access in 2013. Although AML was open to talks, it insisted that Sable make investments in the infrastructure that would connect its Guinea deposit to Tokadeh. Rather, Sable suggested that AML buy its ore at the border without offering the required product details. The business finally failed as a result of financial difficulties, a decline in the price of commodities globally, and a corruption scandal involving Senator Varney Sherman of Liberia.
In addition to its railway projects, AML has made major economic contributions to Liberia, including the promise of more than 2,000 employment and a new $1.7 billion investment in an ore processing plant. On the other hand, HPX wants to move its Guinean ore through Liberia for just transit costs and has not yet made any sizable direct investments in Liberia. AML sees HPX’s stance that it shouldn’t run the railway as a calculated move to thwart its growth goals and deny Liberia financial advantages.
AML keeps stressing that all profits will go straight to the government and that it has no financial interest in third-party transit fees. However, the more general question still stands: is HPX’s drive for exclusive railway ownership in line with Liberia’s long-term economic stability, or is it a deliberate attempt to control the country’s vital infrastructure for its own benefit?
127 Liberian contractors have been upgraded to full-time employees by ArcelorMittal Liberia, offering them the prospect of work stability. The company’s mining settlements in Nimba, Bong, and Grand Bassa are home to a number of new staff members.
The majority of them are Articulated Dump Truck (ADT) operators. Some of the happy workers claim that after completing training courses offered by ArcelorMittal Liberia’s Mobile Training Section, they have been working there for three to six months, most of these new employee are women.
The new high rate of women employment at AML proves the multi millionaire company promotion of gender equality and the promotion of women in the company. The new employee received a monthly stipend throughout training to help with accommodation, food, and transportation. They were offered Short Term Employment (STE) after completing their training, and as of this February, they have been promoted to Fixed Term workers (FTE) or permanent workers.
