Monrovia – The Liberian government has reversed a recent decision by the Inter-Ministerial Concessions Committee (IMCC) reaffirming ArcelorMittal Liberia’s (AML) role as operator of the Yekepa–Buchanan railway, following mounting pressure from rival mining company, Ivanhoe Liberia, formerly HPX.
By Gerald C. Koinyeneh, [email protected]
This dramatic U-turn comes less than two weeks after the IMCC reaffirmed AML’s rights to operate the critical rail infrastructure beyond 2030, citing the need to maintain legal certainty, investor confidence, and operational stability. However, President Joseph Boakai has now directed the National Investment Commission (NIC) to scrap the arrangement and revert to the government’s earlier stance: the appointment of an independent rail operator in line with Executive Order No. 136.
FrontPageAfrica has learned that NIC Chairman Jeff Blibo has complied with the president’s directive, withdrawing official communication previously sent to both AML and Ivanhoe. The withdrawal letter reportedly reiterates the government’s unwavering commitment to a multi-user system with an independent operator, as outlined in the October 2023 executive order.
Intense Lobbying by Ivanhoe
The policy reversal follows sustained lobbying by Ivanhoe Liberia, which has been pushing the Boakai administration to enforce its policy of an open-access, independently managed railway system.
“It is very unusual for a mining company to operate a railway line owned by the government,” said Bronwyn Barnes, President and CEO of Ivanhoe, during an exclusive interview with FrontPageAfrica in Monrovia. “What typically happens is the government appoints an independent operator and ensures equitable and transparent access for all users. What the Boakai administration is doing aligns with international best practice.”
Despite Ivanhoe’s push to transport iron ore from its Guinean operations through Liberia, concerns persist over whether the Guinean government has formally authorized such an arrangement. In 2020, Guinea permitted a maximum of five million metric tons per annum (mtpa) of ore to transit through Liberia—a cap that reportedly remains unchanged.
In a letter to Barnes, President Boakai’s Economic Advisor, Molley Kamara, criticized Ivanhoe for shifting from its original commitment to build new infrastructure to now seeking access to AML’s existing assets. He also accused the company of a lack of transparency regarding its projected $3.15 billion economic impact and questioned the credibility of its claims.
“Your company has not been transparent with the government and the IMCC,” Kamara wrote. “Can the Guinean government guarantee that Ivanhoe would ship ore through Liberia—and at what volume?”
Ivanhoe’s Defense: Legal Backing and Agreements
Responding to the skepticism, Barnes maintained that her company holds a mining convention ratified by Guinea’s parliament in 2020, granting Ivanhoe the right to export up to 30 million mtpa through Liberia. She added that there is also a bilateral treaty between Liberia and Guinea, ratified by both nations, allowing for cross-border mineral exports and access to the Yekepa-Buchanan railway and Buchanan Port.
“All those agreements have been in place since 2020,” she said. “What we’re doing now is finalizing a framework agreement with Liberia to provide technical and operational access to the railway.”
Skepticism Over Guinea’s Intentions
Critics remain unconvinced, pointing out that Guinea has not permitted cross-border access to Liberia for nearly half a century. With Guinea constructing its own rail infrastructure, many questions why Ivanhoe insists on Liberia.
Barnes clarified that the railway under construction in Guinea is exclusive to the Simandou Iron Ore Project and is being developed by Rio Tinto Simfer and the Winning Consortium. “That railway is not accessible to us. It doesn’t reach our project site and would require an additional 150 kilometers of track, which hasn’t been studied or agreed upon,” she explained.
Instead, Ivanhoe plans to truck its ore approximately 50 kilometers from its mine site to Yekepa for loading onto the Liberian railway.
Why an Independent Operator?
Barnes emphasized that the push for an independent operator is consistent with President Boakai’s policy and Executive Order 136.
“The president has been clear: a national railway authority will be established, and it will appoint an independent operator to manage access for multiple users,” she said. “International companies entering Liberia must respect the policy decisions of its elected government.”
Safety and Capacity Concerns
Asked about how HPX plans to accommodate multi-user traffic on the existing rail without compromising safety, Barnes deferred responsibility to the Liberian government.
“We’re not the operator of the line. The government knows the current capacity and must ensure that safety and operational standards are upheld for all users,” she said.
AML Expansion Stalled?
Some Liberian stakeholders argue that Ivanhoe’s lobbying has stalled AML’s much-anticipated Phase II expansion and the ratification of its Third Amendment, potentially costing the country millions in revenue and thousands of jobs.
When asked about HPX’s position on AML, which claims to have invested over $800 million in rail and port infrastructure and more than $1.7 billion in Liberia, Barnes was dismissive.
“The relationship between the government of Liberia and AML is an issue for the government of Liberia. If the government of Liberia agrees, we could access that rail.”
“We have not seen any evidence to substantiate that 800 million investment on the existing railway line. And that’s because ArcelorMittal Liberia doesn’t have to show us that data. It is the responsibility of the government of Liberia to ask that question. The railway line is still own by the government of Libera. It is not owned by another mining company.”
