Arcelor Mittal Liberia has described claims that it is blocking other companies from using the Yekepa-Buchanan railway as false. “This is simply not true,” the company said.
According to the company, AML supports a system where multiple companies can use the railway fairly, under clear rules set by the government.
“When AML first came to Liberia, the railway was not working, and the government didn’t have the money to fix it. As part of its agreement, AML fully repaired and has been maintaining the railway so that mining exports and other businesses could continue,” it said.
However, the Government of Liberia (GoL) has put in place a Rail System Operating Plan, which the company says it has agreed to.
This plan ensures that any company can use the railway while AML continues to operate and maintain it—just like similar models in countries such as Australia, Brazil, and Canada.
Some argue that Liberia should bring in a different company to operate the railway, but that would be a waste of taxpayers’ money. It would cost the government millions of dollars, money that could instead go to building schools, hospitals, and roads.
AML has already invested $3.5 billion in Liberia and is willing to run the railway at no profit, meaning all companies can use it at a fair cost.
Arcelor Mittal Liberia says if its expansion is approved, Liberia will benefit greatly:
More exports: Iron ore shipments will increase from 5 million tons per year to 20 million tons, bringing in more revenue.
Give the government of Liberia $200 million every year
More money for Liberia: The government could receive at least $3 billion in revenue, and possibly $4 billion if market conditions remain favorable.
More jobs: AML will create 2,000 new direct jobs, plus many more for businesses that support mining operations.
“Liberians need jobs and economic growth. Instead of pushing away a company that has invested heavily in the country, the government should focus on making sure AML’s investment benefits Liberia and its people, not foreign interests,” a source familiar with the agreement said.
