Monrovia – A FrontpageAfrica investigation has uncovered concerns regarding HPX’s efforts to pressure President Boakai for access to the Liberian railroad to transport Guinean iron ore to the Port of Buchanan. The investigation raises questions about HPX’s bad faith, apparent lack of capacity, alleged misrepresentation of its $5 billion Liberty Corridor promises, and the potentially improper leveraging of its ties to the American government.
By Rodney D. Sieh, [email protected]
HPX, a private American company distinct from the Toronto-listed Ivanhoe Mines, is developing the Nimba iron ore project in Guinea. The company’s attempt to utilize the railroad operated by Arcelor Mittal (AML) to ship its landlocked Guinean ore has resulted in significant friction between the two entities, drawing in officials from Liberia’s post-war administrations.
President Joseph Nyuma Boakai sought to resolve this impasse by issuing Executive Order 136, aiming to break AML’s perceived monopoly by establishing a National Rail Authority to manage the railway for the benefit of Liberian mining and agriculture investors. However, the Executive Order failed to end the dispute. Instead, government supporters on both sides of the contentious issue have reportedly tried to use their connections with President Boakai to advance the interests of their respective allies.
Recently, Jeff Blibo, Chairman of the National Investment Commission, announced that the Inter-Ministerial Concession Commission (IMCC) had voted to grant AML continued exclusive rights to operate the railroad based on the existing agreement, which expires in 2030. This decision has been questioned by officials within the administration who align with HPX and Ivanhoe, citing concerns about transparency and fairness. The impasse remains unresolved, with an IMCC meeting scheduled for May 6 following a contentious letter from HPX’s Bronwyn Barnes to the President.
AML was initially granted a 25-year concession agreement encompassing the railroad and the Port of Buchanan, stemming from the old LAMCO concession. This agreement envisioned a joint venture with AML holding a 70 percent stake and the Liberian government 30 percent. For decades, the railroad and port have been considered the most economically viable route for exporting ore from Simandou, Mount Nimba, and other deposits near the Liberian border.
Constructing a railway from this region of Guinea to the Port of Conakry was projected to be prohibitively expensive, potentially rendering iron ore projects unfeasible. However, the current Guinean government has since initiated the development of its own rail infrastructure to transport Guinean ore to a new port within Guinea.
An examination of the current stalemate suggests that HPX’s commitment to its announced $5 billion Liberty Corridor may be questionable. Email exchanges obtained by Frontpage Africa reportedly reveal Liberian government officials accusing HPX of bad faith, an inability to secure funding for feasibility studies, and disrespectful conduct towards President Boakai.
Further communications between HPX officials allegedly indicate that the company claims to have raised only $5 million for the ambitious multi-infrastructure Liberty Corridor project, which includes rail, road, fiber optics, energy transmission, and a new deep-sea port, as announced by HPX’s Robert Friedland and Guma Robert Gumede. Mining experts contend that this amount is insufficient and disrespectful to Liberia, as a proper feasibility study would cost upwards of $100 million. HPX had reportedly only secured a $5 million commitment from the U.S. government before the U.S. Senate Foreign Relations Committee rejected the application, deeming it not aligned with anti-China critical mineral interests. Securing hundreds of millions of dollars would be necessary for bankable feasibility and environmental impact studies for a project of this scale.
Another critical aspect highlighted by the investigation is the security of HPX’s tenure over the Nimba Range project and the economic viability of using the Liberian railroad. Some experts speculate that HPX’s primary objective is to transport its existing ore stockpiles from Nimba in Guinea, potentially ending its involvement with Liberia once Guinea’s own railway to Simandou and other nearby areas is complete. This scenario suggests that HPX’s interest might be limited to shipping its current Guinean stockpiles rather than supporting sustainable job creation, economic linkages, and socio-economic development through the Liberty Corridor in Liberia.
Other developments further indicate a potential lack of good faith on HPX’s part. The U.S. Senate reportedly blocked funding for the Liberian National Railway Authority, labeling the project a “grandiose scam” lacking demonstrable American economic and security benefits. HPX has allegedly used its Canadian and American connections to pressure Liberian government officials.
In a related development, South African businessman Robert Gumede, a partner in the HPX project, is reportedly reconsidering HPX’s commitment to the Liberian government and has communicated his concerns to high-ranking government officials. Sources indicate that Mr. Gumede has secured over $3.5 billion from the African Development Bank (AfDB) for the project, with additional financiers lined up. HPX’s Bronwyn Barnes and Robert Friedland were reportedly displeased when Mr. Gumede announced this $3.5 billion in Kenya in April 2024, in the presence of Liberian officials, including Minister of State without Portfolio Mamaka Bility, during the AfDB’s annual conference following the bank’s board decision – a significant development.
Experts advise the Liberian government to continue pursuing a multi-user rail policy but emphasize the need for clear commitments from local mining and agriculture companies to utilize the railway. Simultaneously, they recommend that the government honor its contract with AML, recognizing the company’s past investments in the rail infrastructure.
Regarding HPX’s potential temporary use of the Liberian rail, experts suggest that the government should secure a firm commitment from HPX to invest the seed capital necessary to cover 100% of the feasibility study (estimated at around $150 million) for the Liberty Corridor. Furthermore, they advise ensuring HPX’s commitment to utilizing the new Liberty Corridor for the entire lifespan of its Guinean iron ore mine to transport its products through the corridor and the deep-sea port.
Additionally, experts urge the Liberian government to engage directly with the government of Guinea to understand its long-term plans regarding the Liberty Corridor and whether it intends to support the export of Nimba iron ore through this corridor. They strongly advise President Boakai to engage directly with his Guinean counterpart, rather than relying solely on HPX, warning that failure to do so could jeopardize the economic benefits of the envisioned Liberty Corridor, potentially rendering it a stillborn project.
Some diplomatic observers say, President Boakai’s ruling Unity Party government must be wary of repeating the hard and painful lessons learnt from the colonial bias agreements which have robbed and raped Liberia for almost 100 years by Firestone and other business conglomerates which contributed to failed socio-economic stand still and environmental negative impact.
For the foreseeable future, some say, the government should be keen to protect well-meaning investors and not transit users like Guinea-based companies concerned mainly with creating jobs in Guinea and not Liberia.
