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Home » Liberia: Bao Chico Resources Reaffirms Commitment to Upholding Mining Agreement

Liberia: Bao Chico Resources Reaffirms Commitment to Upholding Mining Agreement

by lnn

MONROVIA – The Management of Bao Chico Resources Liberia Ltd has reaffirmed its commitment to honoring the Mineral Development Agreement (MDA) with the Government of Liberia. The management has also pledged to enhance its Corporate Social Responsibility (CSR) efforts to benefit the communities it operates in through building a more vibrant and responsive relationship.

The company entered into an MDA with the Liberian government in 2022 to extract iron ore in Gbarpolu County following an exploration activity. Since commencing operations, the company has undertaken various initiatives, including constructing a road connecting Bomi, Gbarpolu, and Montserrado Counties to improve transportation and enhance trade within the Eastern region of the country.

The company has also assured its commitment to fulfilling its CSR obligations outlined in the MDA.

An independent investigation conducted by a team of journalists revealed that the company has supported the construction of schools, hand pumps, and bridges connecting towns and villages. The extra community support fund, outside of the corporate social development fund to the tune of US$19,000 was disbursed in Gbarpolu to build an elementary school.  In addition, two hand pumps were constructed at the cost of US$7,000, while four were repaired at US$3200.

In a letter seen by reporters, residents of Dukuly Village thanked the company’s management for constructing a bridge linking their village to several communities in Gbarpolu and for also building a hand pump to provide safe water.

While residents appreciate the progress made, they also highlight the need for further social development initiatives.

 “We are grateful for the level of work that the company is doing here but there is a need to do more,” a resident told a team of reporters. We hope that going forward we will establish a relationship of mutual benefits and respect so that the company can operate smoothly without hindrance.”

“We need a lot of social development initiatives in our communities and the company has committed to another resident said. We want to be thankful to them for the initiatives they have been able to carry out here,” another resident said.

The county’s former Superintendent, Joseph Akoi, also thanked the company for repairing the Lowoma-Tetoquelleh road and for providing various forms of assistance to the county.

The investigation also uncovered that the company has expressed its commitment to fulfill its corporate social responsibility as stipulated by the MDA. However, the Government of Liberia, through its relevant agencies, has yet to establish a committee to manage the fund. The MDA specifies that the Annual Social Contribution and utilization of such funds for specific projects shall be managed by a dedicated committee in accordance with the structures established by the Government in consultation with the Committee. The company is required to have at least one representative on the Committee.

However, the government has yet to establish a committee, as mandated by the agreement, to oversee the management and allocation of social contributions from the company. Despite continued pleas from the company and attempts to engage the government in establishing the committee, no progress has been made.

A letter from the company, seen by reporters, addressed to both the current and immediate past Ministers of Mines and Energy requested the officials to establish the committee as stipulated in the agreement.

The company remains committed to fulfilling its obligations and hopes for a mutually beneficial relationship with the communities and government moving forward.

The company’s General Manager, Mr. Zhang Zhen, has expressed the company’s willingness to adhere to the MDA. “The company will be here for the next 25 years. We want to have a harmonious relationship with the community. We will do our best to maintain a cordial relationship with them,” Mr. Zhang told reporters.

He noted that a communication barrier has been one of the challenges management has encountered, but with the help of the Liberian staff, management is addressing the problem. He praised the people of Gbarpolu County for being peaceful and welcoming.

In 2022, the company was awarded a “Class A” mining license to extract iron ore for 25 years. The company has employed many Liberians from across the country and the host counties.

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