The Liberian Senate has ordered a high-level investigation into the reported US$1.4 billion investment by ArcelorMittal Liberia (AML) for the construction of an iron ore processing plant in Yekepa, Nimba County, amid growing concerns that the company’s declared capital spending may be inflated to avoid tax obligations and reduce future government revenues.
The Senate’s action follows a strongly-worded communication from Senator Nya D. Twayen, Jr. of Nimba County, who raised alarm over what he described as a pattern of consistent financial losses declared by AML since the inception of its operations in Liberia.
“This urgent inquiry is necessitated by the need to verify and establish the actual cost of the iron ore processing plant recently constructed by ArcelorMittal Liberia,” Senator Twayen stated in his June 13, 2025 letter to the Senate plenary. “AML claims an estimated investment of US$1.4 billion, spread over four years, translating to about US$350 million per annum. This is directly recorded as an expense on their Profit and Loss account.”
The communication further explained that, at Liberia’s current 35% Corporate Income Tax (CIT) rate, these declared expenses potentially cost the government up to US$123 million in tax revenues annually — a staggering loss for a country struggling with a weak revenue base and high public sector needs.
“What’s even more alarming is that AML has reported operating losses consistently over the years,” the Senator warned. “These newly declared capital investments will only deepen that trend. Not only will AML avoid paying corporate tax now, but these inflated losses will be carried forward, further reducing any future profits upon which CIT could be assessed.”
Senator Twayen emphasized that this tactic could effectively shield ArcelorMittal from ever paying meaningful taxes to Liberia, even as the country’s finite iron ore reserves continue to be depleted.
“This tactic effectively shifts the financial benefit away from the Liberian people — especially Nimba County, which hosts the resource — and toward a prolonged tax shield for the concessionaire. With the depletion of Liberia’s iron ore resources looming, there is a legitimate fear that the country will realize no meaningful revenue from this project before the end of the concession period.”
The communication, received on Tuesday, June 17, received full backing from Senate President Pro Tempore Nyonblee Karnga-Lawrence, who endorsed the investigation and mandated the Joint Committees on Concession & Investment, Public Works, and Mines & Energy to immediately commence a thorough analysis of the actual cost and economic implications of AML’s operations.
“Inflated or overstated investments swallow profit and deprive Liberia of receiving dividends — a case with us and ArcelorMittal for 20 years now,” Karnga-Lawrence remarked during plenary. “We will get to the bottom of this one.”
As part of the Senate’s probe, the relevant officials to be summoned for questioning and testimony include the Chairman of the National Investment Commission, the Minister of Public Works, the Minister of Mines and Energy, and the Country Representative or Chief Executive Officer of ArcelorMittal Liberia.
The Senate wants to determine whether the US$1.4 billion reported investment aligns with AML’s contractual obligations, and to evaluate how the structure of these investments is affecting Liberia’s tax revenues and long-term economic interests.
Senator Twayen’s letter, which has sparked public interest and scrutiny of AML’s operations, closes with a call to national duty:
“I trust that you will see the national interest at stake in this matter and act accordingly,” he appealed to his fellow Senators.
Critics, including Senator Twayen, argue that Liberia’s relationship with ArcelorMittal has, for nearly two decades, been one-sided, with the company consistently declaring losses and reinvesting in capital projects that conveniently reduce taxable profits — a strategy common in multinational financial structuring but deeply damaging to developing host nations like Liberia.
“Remember, inflated or overstated investment swallows profit and deprives Liberia of receiving dividends — this has been the case with us and ArcelorMittal for 20 years now,” Karnga-Lawrence reiterated.
The situation raises broader questions about the transparency of Liberia’s concession agreements, the capacity of regulatory institutions, and the will of public officials to challenge entrenched foreign corporations operating within the country.
Many Liberians have welcomed the Senate’s action as long overdue, and civil society organizations are already calling for public hearings, third-party audits, and international oversight to ensure that the findings of this probe are not buried or politically negotiated away.
