— Amid prospects of revenue windfall for Liberia
Ivanhoe Liberia, the Liberian subsidiary of High Power Exploration (HPX), has been recognized as the “Second Highest Contributor Overall – 2022” by the Liberia Revenue Authority (LRA). The award was presented at the LRA’s Taxpayer Appreciation Dinner, which honored businesses and individuals for their tax compliance across 2022 and 2023. This recognition underscores HPX’s growing role as a major economic player in Liberia and comes as the company edges closer to finalizing a landmark Access and Concession Agreement with the Government of Liberia.
HPX’s recognition as the second-highest taxpayer for 2022 is remarkable given that the company has not yet commenced full-scale operations in Liberia. The award reflects HPX’s payment of US$37 million to the Government of Liberia under the 2022 Framework Agreement. This substantial upfront payment was deposited directly into the General Revenue account at the Central Bank of Liberia, ensuring its capture in the national revenue figures.
Receiving the award on behalf of the company, HPX Country Manager Henrique Caine remarked, “HPX is committed to a long-term development partnership with Liberia and Guinea, in which the region will benefit immensely through economic growth and job creation. We look forward to concluding negotiations and commencing operations that will lead to even more revenue to the government.”
Unlocking US$1.6 Billion in rail access fees
The recognition comes as HPX and the Liberian government are in the final stages of negotiating an Access and Concession Agreement for the Yekepa-Buchanan railway. Sources close to the negotiations have revealed that HPX’s proposal includes a comprehensive fiscal package that could generate over US$1.6 billion in rail user fees alone for the government over the concession’s 25-year lifespan.
Under the agreement, HPX plans to evacuate significant volumes of iron ore via the Yekepa-Buchanan railway, starting with 2–5 million tonnes annually during its initial phase. This volume is projected to increase dramatically once HPX’s Liberty Corridor project, a proposed parallel railway capable of handling up to 50 million tonnes annually, comes online. The rail fees, coupled with port charges from the use of Buchanan Port, are expected to significantly boost Liberia’s revenue streams, marking a new era for the country’s infrastructure and mining sectors.
In addition to rail access fees, HPX’s operations promise transformative infrastructure investments. The company plans to invest billions of dollars in rail and port facilities as part of its Liberty Corridor project, which includes the development of a new deep-water port and parallel rail lines to complement the existing Yekepa-Buchanan railway. Preliminary estimates put the total infrastructure investment at US$3–5 billion, a figure that represents one of the largest private sector commitments in Liberia’s history.
These investments are expected to catalyze economic growth and job creation, particularly in regions such as Nimba County, where HPX holds key iron ore exploration licenses. The company’s plans to develop these assets are contingent on the successful conclusion of the Access and Concession Agreement, which will provide the critical transportation infrastructure needed for large-scale mining operations.
HPX and Liberia’s future revenue potential
HPX’s recognition as a top taxpayer further cements its growing reputation as a key contributor to Liberia’s economic development. Despite not having commenced full-scale mining and export operations, the company’s payment under the 2022 Framework Agreement highlights its commitment to fulfilling its financial obligations and supporting Liberia’s fiscal stability.
The recognition also reflects the Boakai administration’s efforts to attract and retain credible investors capable of transforming Liberia’s infrastructure and resource sectors. The Liberia Revenue Authority’s decision to honor HPX during this year’s Taxpayer Appreciation Dinner underscores the significance of private sector contributions in bolstering government revenue.
The ongoing negotiations between HPX and the government hold immense promise for Liberia’s fiscal future. Beyond the projected $1.6 billion in rail user fees, the company’s plans to expand its iron ore evacuation capacity through the Liberty Corridor could bring even greater financial benefits. The increased use of Buchanan Port for iron ore exports is anticipated to generate significant marine and port charges, further enhancing the government’s revenue streams.
Moreover, the establishment of the National Railway Authority (NRA) under Executive Order No. 136 ensures that Liberia’s rail infrastructure will operate as a multiuser system, allowing other mining companies to benefit from shared access. This approach is expected to attract additional investment and diversify revenue sources, amplifying the economic impact of HPX’s operations.
The recognition of HPX as a top taxpayer and the potential conclusion of the Access and Concession Agreement mark a pivotal moment for Liberia’s economic trajectory. With billions of dollars in infrastructure investments and revenue on the horizon, the country is poised to leverage its natural resources to achieve sustainable development and economic growth.
As HPX prepares to commence operations, the Boakai administration’s focus on fostering partnerships with credible investors like HPX is beginning to bear fruit. The projected US$1.6 billion in rail user fees, coupled with the broader economic benefits of HPX’s investments, signals a brighter future for Liberia’s mining and infrastructure sectors. The nation now stands on the brink of a transformative era, with HPX playing a leading role in shaping its economic destiny.
