Monrovia – Monrovia – After months of negotiations, the Government of Liberia has decided to retain ArcelorMittal Liberia (AML) as the operator of the Yekepa-Buchanan railway.
By Gerald C. Koinyeneh, [email protected]
The decision, announced by the Inter-Ministerial Concessions Committee (IMCC), followed extensive deliberations concerning multi-user access and operational responsibility for the 243-kilometer rail line. The railway, originally constructed and operated by the Liberian-American-Swedish Mining Company (LAMCO) before the Liberian civil war, was inherited by ArcelorMittal under its 2005 Mineral Development Agreement (MDA) with the Government of Liberia.
Since then, ArcelorMittal has invested over US$800 million in the rehabilitation and operation of the railway, making it the sole operator to date. However, recent interest from Ivanhoe Liberia, a subsidiary of Ivanhoe Atlantic Inc., to export iron ore through the same railway from neighboring Guinea led the government to consider appointing an independent rail operator.
That proposal was met with strong resistance from AML. Following months of negotiation and review, the IMCC has now reaffirmed AML’s position as the official rail operator, citing legal, economic, and operational considerations.
In a formal letter addressed to President Joseph Boakai, IMCC Chairman and National Investment Commission (NIC) Chairperson Jeff B. Blibo stated: “In the interest of preserving legal certainty, maintaining investor confidence, and ensuring operational stability, the IMCC has resolved to retain ArcelorMittal Liberia (AML) as the rail operator of the existing railway infrastructure.”
Key Reasons for the Decision
According to Blibo, the decision was based on several key considerations:
Legal Standing: AML’s rights and obligations under its existing Mineral Development Agreement remain legally binding. A shift in operator could expose the government to litigation and delay critical infrastructure usage.
Substantial Investment: Blibo said AML has already invested significantly in restoring the railway. Retaining AML helps avoid operational disruptions, especially as the company plans to scale up exports to 20 million metric tons annually by the end of 2025.
Multi-User Access Commitment: The government remains committed to a transparent and fair multi-user access framework under the Rail Standard Operating Procedure (RSOP), which ensures non-discriminatory access for all qualified users, including Ivanhoe Liberia.
Regulatory Oversight: The government is fast-tracking the establishment of the National Railway Authority (NRA), which will oversee access terms and operator performance.
Blibo reaffirmed the IMCC’s commitment to fair and transparent rail governance:
“The IMCC remains committed to ensuring that both current and future users of Liberia’s rail infrastructure operate under a predictable, commercially viable, and transparent regime. We further affirm our readiness to work with Ivanhoe Liberia in finalizing its Access and Concession Agreement and supporting the timely development of its Liberty Corridor.”
In a separate letter to Bronwyn Barnes, President and CEO of Ivanhoe Atlantic Inc., Blibo expressed appreciation for the company’s investment interest and acknowledged its plans to evacuate 2–5 million metric tons of ore annually in Phase I, with a long-term vision of exporting up to 30 million metric tons through its proposed Liberty Corridor.
The letter confirmed that while AML will remain the current operator, the government will facilitate access to the rail under the RSOP and with NRA oversight. It also acknowledged Ivanhoe’s US$10 million commitment to operationalizing the NRA.
“We confirm our readiness to work with your team to ensure that the feasibility, negotiation, and eventual development of this parallel rail corridor are undertaken in a timely and coordinated manner,” the letter read.
AML’s Transformative Investment
The decision marks a major victory for ArcelorMittal Liberia, the country’s largest private investor and employer. The company has overhauled the entire railway infrastructure without external loans or government funding. According to AML, its investments include full replacement of timber sleepers with durable steel alternatives, acquisition of nine new GE locomotives and 500 wagons, expansion of all nine railway loops to handle 120-wagon ore trains, installation of a state-of-the-art WabTec rail control system, reinforcement of the rail bed and expansion of Buchanan Yard and construction of new sidings and upgraded level crossings from Buchanan to Yekepa.
AML noted that these upgrades have transformed the war-ravaged rail line into a world-class mining logistics corridor, capable of supporting Liberia’s economic growth.
For many across Liberia, this was not just a legal matter. This was personal to the hundreds of mouths fed by the operations of ArcelorMittal Liberia
In cities like Yekepa and Buchanan, where AML’s presence has helped revive local economies, the news came as a relief and a cause for renewed hope. Market vendors, teachers, youth groups, and contractors have spent the last few months uncertain about what the future holds. The reaffirmation from government officials now brings clarity and reassurance.
At the heart of the dispute lies a powerful rivalry between ArcelorMittal Liberia, one of the country’s largest foreign investors, and Ivanhoe Liberia, the local arm of HPX, a U.S.-backed mining firm chaired by billionaire financier Robert Friedland.
‘A line in the sand’
Since acquiring rights to the Nimba iron ore deposit across the Guinean border, HPX has launched an aggressive campaign to gain access to Liberia’s rail and port infrastructure specifically, the 243-kilometer AML-operated railway that connects the mines in Yekepa to Buchanan Port.
Despite AML having invested over $800 million to develop and maintain the infrastructure over the past decade, Ivanhoe pushed for what it called “open access,” lobbying to have AML removed as operator altogether. Sources close to the process say HPX’s approach included intense lobbying, PR pressure, and behind-the-scenes efforts to strike new deals with segments of the Liberian administration moves critics feared would undermine rule of law and deter future investors.
But the May 1 letter has stopped those efforts completely.
“This is more than just a policy decision—it’s a line in the sand,” said a government official familiar with the matter. “We are telling the world that Liberia keeps its word and honors its contracts.”
For AML, the reaffirmation comes at a critical time.
The company is currently investing $1.2 billion in a Phase II Expansion Project that will bring new life to Liberia’s mining sector. That includes the construction of a state-of-the-art concentrator in Yekepa, upgrades to the Buchanan Port, and the full rehabilitation of the railway line investments set to double iron ore exports and significantly boost government revenue.
But more importantly, this project is about the people of Liberia who make up more than 95% of AML’s current 7000 plus strong workforce.
So far, more than 3,000 jobs have been created by the expansions alone with thousands more expected as the expansion scales. AML has committed to training Liberian engineers, technicians, and managers, preparing a generation to lead in a sector long dominated by foreign expertise.
In nearby towns, the company is also helping rebuild schools, support agriculture programs, and provide healthcare services. These are the kinds of changes that locals say they can feel every day.
The government’s stance has earned praise from both domestic and international circles. Legal experts have described the letter as a timely reassertion of sovereign clarity, essential to upholding the integrity of Liberia’s investment framework.
“This helps repair the uncertainty that crept in over the past year,” said an official briefed on the matter. “No credible investor wants to operate where agreements can be overturned overnight.”
For a country still rebuilding its economic foundation, the stakes couldn’t be higher. Liberia’s credibility on the global stage, especially in extractive industries, depends on how it treats those who honor long-term commitments to its people.
From Nimba to the port towns of Grand Bassa, the ripple effects of this decision are already being felt. There is cautious optimism but also determination.
As Liberia positions itself for future growth, the message is clear: investment is welcome but rules must be followed.
