Recent developments reveal a troubling convergence of legal irregularities and corporate overreach. The March 2022 Framework Agreement, a document that HPX is using as a noose on the neck of the Government of Liberia, is now under intense scrutiny—not only for its procedural deficiencies but also for the subsequent threats issued by HPX. As outlined in the Ivanhoe letter dated January 24, 2025, HPX has threatened to invoke a default under this framework if an Access Agreement is not signed by February 15, 2025. This move, if enforced, would compel Liberia to pay US$37 million, compounded annually at 10%, based on an agreement that is fundamentally flawed and arguably illegal. Because the $37 million was not an investment but rather a loan then it should have been ratified, under Liberian Law. No investment would have required the Government to repay at the interest rate of 10% compounded annually. This was a predatory loan and it is illegal.
Illegality at the Core
The framework itself is tainted by a lack of proper legislative ratification. Known colloquially as the “Weah agreement,” it was signed without adequate parliamentary oversight, undermining the democratic process and jeopardizing national sovereignty. Such a critical misstep raises serious constitutional questions about its enforceability and the legitimacy of the obligations it purports to impose on the Liberian Government. The absence of legislative endorsement not only renders the agreement questionable under national law but also exposes the Government to significant legal risks should HPX decide to enforce the default clause.
HPX’s Baseless Threats
The threat from HPX goes beyond mere contractual enforcement. It is an aggressive attempt to pressure the Liberian Government into granting an impractical 30 mtpa rail capacity—despite the fact that the actual capacity is undetermined. Furthermore, HPX’s demand to remove ArcelorMittal as the operator—a company that has effectively managed the rail operations for over 15 years and has a proven track record in moving Liberian iron ore—is another contentious point. Instead, HPX seeks preferential treatment for Guinean iron ore transit, thereby subverting established practices and national interests. The Ivanhoe letter clearly illustrates that HPX’s actions are designed to force the Government into accepting an inequitable deal that benefits external investors over Liberian development. It seems that HPX is not interested in using the rail but more interested in demanding the removal of ArcelorMittal as an operator. Why is a company from Guinea making such a demand? Would HPX demand that the Government of Guinea change its rail operator?
A Call for Transparency and Accountability
Given these critical issues, it is incumbent upon Liberia’s National Legislature to intervene. The Legislature must hold a public hearing on the Framework Agreement to scrutinize its legality, review its terms, and assess its implications for national sovereignty and economic policy. Public hearings would provide a platform for stakeholders—from civil society groups to industry experts—to voice concerns and demand transparency. The stakes are too high: an unratified and flawed framework could lock Liberia into unfavorable obligations while undermining the nation’s regulatory and legal integrity.
Legislative Oversight as the Way Forward
It is time for the National Legislature to stand up and demand accountability. A public hearing on the Framework Agreement is essential to ensuring that all contractual obligations are fully vetted and legally sound. Such oversight is necessary to protect the interests of Liberia and its citizens from external pressures and to guarantee that any future agreements are developed transparently, with full legislative and public participation.
The current climate—where HPX’s threats and the framework’s questionable legality converge—calls for decisive action. The Legislature must challenge HPX to either substantiate its claims through proper arbitration channels or withdraw its threats. Only through rigorous legislative oversight can Liberia safeguard its national interests, ensure compliance with the rule of law, and promote sustainable development.
The time to act is now. The National Legislature must take immediate steps to hold public hearings, scrutinize the Framework Agreement, and reaffirm Liberia’s commitment to transparent and lawful governance.
