As AML to lose railway rights, endangering US$ billion in investment and Thousands employment.
Monrovia, Liberia – According to reports, the Liberian government is exploring controversial measures that might change the mining industry in the nation, including the termination of ArcelorMittal Liberia (AML) as the operator of the Yekepa-to-Buchanan railway and the handover of authority to a third party. The implementation of this decision could undermine one of the largest foreign investments in Liberia, cost the country millions of dollars in revenue, and endanger thousands of jobs.
As AML prepares to spend an additional US$1.7 billion in Liberia’s economy, the move is expected to create more than 2,000 new jobs. Even while the corporation supports a multi-user agreement, it has emphasized that it must maintain operational control to safeguard its investment, despite having already spent over US$800 million on railway restoration. However, increasing pressure to secure the rail line for High Power Exploration (HPX) and its affiliates is leading others to question if the government is on the verge of committing a grave error.
Through tax payments, infrastructural investments, and job development, ArcelorMittal Liberia has long been a major economic force in the nation. The government runs the danger of causing uncertainty that would discourage future investment, not just from AML but also from other international companies seeking stability in Liberia’s economic environment, if it gives railway authority to HPX or another private operator.
If the government’s decision compels AML to reevaluate its activities, it might jeopardize its planned development, which includes an ore processing plant and additional mining capacity. Liberia’s mining sector may suffer significant setbacks in the absence of AML’s ongoing investment especially in the mining counties.
To support mining activities, AML plans to improve its electricity infrastructure, which is a key component of this growth. For its Phase II expansion project, the business is now building two power plants, one in Buchanan and one in Yekepa, to provide dependable electricity.
AML’s new, state-of-the-art iron ore concentrator plant, which is essential to triple production capacity, will be powered by the 72 megawatt Yekepa facility. To support port operations and automated unloading facilities, a 21 megawatt power plant will be built at the Buchanan site. AML’s activities and Liberia’s larger industrial goals will be greatly supported by these power plants, which are almost finished.
AML was recognized as Liberia’s biggest taxpayer in 2024, contributing significantly financially to the advancement of the nation. HPX, on the other hand, has not yet made any significant direct investments in the system and wants sole control of Liberia’s railway in exchange for only paying transit costs. If AML’s operational power is taken away, Liberia will lose millions of dollars in tax revenue, and it’s yet unknown what type of economic benefits HPX would offer.
AML’s involvement in Liberia goes beyond jobs and taxation as well. Rehabilitating the nation’s railway, which had been left unusable during the civil war, has cost the corporation around US$800 million. Between 2007 and 2012, AML oversaw the restoration of the 280-kilometer rail line that connected Yekepa and Buchanan, guaranteeing a modern transportation system that could support an axle weight of 30 tons and travel at up to 70 km/h. The government’s choice to change the operator may impede these advancements and result in inefficiencies.
AML directly employs thousands of Liberians and provides support to countless others through agreements with other businesses. The expansion project is expected to generate a minimum of 2,000 new employment. Uncertainty regarding railway authority may force AML to reduce operations, which would negatively impact thousands of livelihoods and increase the already high unemployment rate in Liberia.
In addition to mining, AML’s infrastructural initiatives, such as worker training programs and road restoration, have a major positive impact on nearby communities. The organization’s Training Academy is essential to upskilling Liberians for long-term mining jobs and maintaining a talent pool for the industrial growth of the nation.
HPX has pushed hard for ownership of the railway in Liberia despite its small investment. Concerns over the moral ramifications of giving the firm authority over such a vital national asset have been raised by its affiliation with Robert Gumede, a South African billionaire connected to many corruption scandals. In order to strengthen its position, HPX has also allegedly participated in backdoor negotiations with Liberian authorities, offering financial assistance for the creation of a National Rail Authority.
HPX is advocating for an unusual 20–30 million tonnes per year (mtpa) transit capacity, which is far higher than AML’s own production levels, even though AML’s Mineral Development Agreement (MDA) allows for joint railway usage. Transferring ownership to HPX without making sure it fulfills comparable operational and financial obligations might create a risky precedent for severing current agreements.
There are still concerns over HPX’s real capacity to fund its suggested “Liberty Corridor” project. The corporation says its $5 billion infrastructure plan would transform transportation in the region, but it hasn’t shown how it can pay for such a big project. Liberia runs the danger of signing a deal that might leave its railway operations in limbo if HPX doesn’t fulfill its end of the bargain without firm financial guarantees.
An important national resource that has to be managed to optimize its financial gains is Liberia’s railway network. Instead of taking away AML’s operational authority, the government need to concentrate on putting in place a transparent and balanced multi-user structure while preserving AML’s command over railroad operations. This would permit access by other mining corporations under transparent and legally binding rules, guaranteeing continued investment, job stability, and steady revenue streams.
Credit: Jenneh T. Borbor, The Liberian Investigator
