—Boakai Administration firm on multi-user policy
Monrovia – The battle over Liberia’s railway infrastructure has intensified as ArcelorMittal Liberia (AML) has formally warned the Government of Liberia (GOL) of potential legal action if it proceeds with a proposed agreement granting multiuser rail access to Ivanhoe Atlantic (formerly HPX). In a leaked email addressed to Liberia’s Inter-Ministerial Concessions Committee (IMCC), AML CEO Michiel van der Merwe argued that the government’s plan to allow other companies access to the Yekepa-Buchanan railway directly violates AML’s existing Mineral Development Agreement (MDA).
This development comes as Liberia moves toward implementing Executive Order 136, which establishes the framework for an independent rail operator regime, effectively ending AML’s monopoly over the railway once its MDA expires in 2030. At the heart of this dispute is the government’s determination to ensure that multiple mining firms—including Ivanhoe Atlantic—can evacuate iron ore from Guinea and Liberia through Liberia’s rail and port infrastructure, unlocking billions of dollars in potential revenue for the country.
AML’s Claims: A Monopoly Under Threat
In its strongly worded email, AML contends that the government’s negotiations with Ivanhoe Atlantic “fundamentally conflict” with its existing legal rights under the MDA. The company alleges that granting Ivanhoe an initial 5 million tonnes per annum (mtpa) of allocated rail capacity undermines AML’s operational capacity and violates the existing procedures for determining excess capacity and third-party access. AML further claims that the proposed deal allows Ivanhoe to construct additional rail infrastructure for up to 30 mtpa, infringing upon AML’s supposed “right of first option” to expand capacity.
Additionally, AML takes issue with the government’s plan to transition to an independent rail operator in 2030 or earlier, arguing that this nullifies its contractual right to operate the railway. The company asserts that it has invested over US$3 billion, including US$800 million in railway infrastructure, and warns that losing exclusive control would jeopardize its investment, increase operational risks, and destabilize its long-term plans.
Beyond the rail dispute, AML also objects to the government granting Ivanhoe access to port facilities in Buchanan, citing Article IX(3)(e) and (f) of its MDA. The company claims that this constitutes a direct breach of its agreement and signals that the government is deliberately favoring a competing company.
AML’s Threat of Legal Action
AML’s email makes it clear that if the government proceeds with the Ivanhoe Atlantic deal, it will trigger legal consequences. The company warns that Liberia’s actions constitute a “breach of the MDA” and that AML will pursue “all available legal remedies” under Liberian law, investment treaties, and international arbitration frameworks. One GOL insider commenting to the Observer privately said, “we dare them to take us to Arbitration, we are a national and sovereign Nation. We get to decide based on economic conditions, how we leverage our infrastructure assets for the betterment of the Liberian people and the very AML MDA grants the Government unquestionably rights to assign excess rail capacity to other users.” AML reportedly has not exported more than 5 mtpa in all the years it has managed the corridor, and the rail was built by LAMCO for up to 22 mtpa.
This legal threat is not without precedent. AML has historically used arbitration and litigation as tools to protect its interests. Given its multinational status and deep financial resources, AML could mount a lengthy legal battle. AML also risks delaying its own expansion plans should they pursue that option.
However, the government has remained steadfast in its position, with Minister of Mines and Energy Wilmot Paye making it clear in a recent interview with the Daily Observer that Liberia is determined to implement a multiuser rail system, regardless of AML’s objections.
The Government’s Response
Despite AML’s aggressive pushback, a legal opinion issued in May 2022 by Liberia’s then Minister of Justice, Cllr. Frank Musah Dean, directly contradicts AML’s claims. In his letter to AML’s legal team, Cllr. Dean dismissed the argument that granting Ivanhoe rail access constitutes a breach of the MDA, emphasizing that Liberia’s existing agreements—including the Ivanhoe Framework Agreement—are entirely consistent with AML’s contractual obligations.
Cllr. Dean pointed out that Sections 9.3(e) and 9.3(f) of the MDA explicitly contemplate multiuser access, allowing third parties to utilize the rail and port infrastructure under mutually agreed terms. He also noted that AML had, in June 2020, formally committed to a multiuser rail model, expressing willingness to cooperate with HPX (now Ivanhoe Atlantic) on developing an expanded rail and port system.
The former Justice Minister underscored that AML’s rights are not absolute, and that the Liberian government retains full sovereignty over its infrastructure assets. His letter reaffirmed that the government is acting within both its legal authority and contractual obligations in negotiating third-party access.
In fact in 2022, additionally, The National Legislature, in a letter to then President George Weah, cited this very issue as one of the reasons it rejected the renewal of the AML MDA. They wrote that extensive public consultations and hearings contributed to their decision. AML seems to not have learned anything from its 2022 MDA rejection, nor the Justice Ministry’s legal opinion and is simply following its same old playbook.
Liberia’s Push for Economic Sovereignty
Liberia’s transition to a multiuser rail system is not just about AML and Ivanhoe Atlantic—it is a matter of national economic strategy. The Yekepa-Buchanan railway is a 360-kilometer sovereign asset, originally built in the 1950s by LAMCO, and turned over to Liberia through a Build, Operate, and Transfer (BOT) agreement. Since AML took control in 2005, no other mining company has been allowed to use the railway, despite billions of tonnes of untapped iron ore deposits sitting idle because of the lack of transport infrastructure.
Independent experts argue that AML’s monopoly has stifled Liberia’s economic potential, limiting competition and preventing the country from collecting much-needed transit fees and infrastructure investment. A multiuser rail model, they contend, will:
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Attract billions in new investment by enabling multiple mining companies to operate.
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Create thousands of jobs by expanding mining and infrastructure projects.
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Boost government revenue, with Ivanhoe Atlantic alone projected to contribute over $2 billion in rail access fees, taxes and other investments over the next 25 years.
What Happens Next?
While AML has made its position clear, the government appears unwilling to reverse course. The Inter-Ministerial Concessions Committee (IMCC) has already outlined steps for implementing the multiuser rail system, including:
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Finalizing the National Rail Standards and Multi-User Access Agreement
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Selecting an Independent Rail Operator (proposals have already been submitted by TheloDB and Railroad Development Corporation)
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Enacting a permanent National Rail Authority law before Executive Order 136 expires in October
Meanwhile, Ivanhoe Atlantic has reportedly expressed no objections to begin large 30 mtpa exports in 2030, signaling its commitment to the multiuser transition plan. However it must commence with its smaller project of shipping 5 mtpa immediately, which the GOL is poised to approve.
With the stakes higher than ever, AML now faces a crucial decision: continue fighting to maintain its monopoly at the risk of losing goodwill with the Liberian government and potential investors—or negotiate in good faith to align with Liberia’s new rail policy. In addition, and based on comments on social media and on radio from the public, the overall sentiment is that a majority of the Liberian public favors multiuser rail access and are supportive of Government’s policy.
Liberia’s stance on multiuser rail access represents a critical moment in its economic transformation. Despite AML’s legal threats, the government’s position is grounded in both legal precedent and economic necessity as argued in the 2022 letter from the Ministry of Justice. While AML threatens the Government, it is well documented in official Government correspondences that have been made public that AML has defaulted on multiple aspects of its MDA, observers are asking, on what legal basis would they be taking the Government to Arbitration when they themselves have defaulted on their own MDA.
The next few days will determine whether AML adapts to the new reality or escalates its legal battle in an effort to protect its decades-old monopoly, as the GOL is reportedly concluding negotiations with Ivanhoe Atlantic, a direct beneficiary of the multiuser rail policy.
