— Calling its decision “reasonable and nationalistic”
Editor’s Note: The Observer has obtained copies of official documents exchanged in 2022 between President George Weah and the National Legislature as background for this story. The House of Representatives after rejecting the AML Agreement, said the Rail, Buchanan Iron Ore Port and related infrastructure be retained by the GOL with an Independent Operator of the rail to ensure fair and equitable access, among other recommendations].
The Government of Liberia is once again at the table with ArcelorMittal, three years after the National Legislature in 2022, rejected the last attempt to extend the current Mineral Development Agreement (MDA) for another 25 years, but this time it is the Boakai Administration that is at the negotiating table. ArcelorMittal is essentially trying to renew its same old lopsided Mineral Development Agreement, with a “Third Amendment,” which they have now submitted with a new laundry list of demands. However, some industry observers are now of the opinion that instead of “amending” the extremely economically faulty 2005 Agreement, which has resulted in lost opportunities for Liberia, the GOL should plan to let it expire, while in the meantime, commence negotiating an entirely new agreement that takes effect in 2030 replacing the 2005 MDA.
That old Agreement was negotiated as the country emerged from the ravages of war and is seen by many as to Liberia’s disadvantage because major sovereign assets were given to ArcelorMittal for its exclusive use—in particular the Yekepa to Buchanan rail and Buchanan Iron Ore Port. As a result, no other company in the last 20 years has been allowed to use and co-invest in those extremely valuable Government Assets in the interest of Liberia. In addition, Arcelor has repeatedly defaulted on the terms of that very Agreement it seeks to amend, as referenced by the National Legislature in communication to President George M. Weah on March 28, 2022.
According to the letter, the Legislature in 2002 informed the then sitting President that they rejected the ArcelorMittal Third Amendment based on “months of stakeholder consultations, several public hearings by its Joint Committee on Investment & Concessions, Mines & Energy, Judiciary, and Ways, Means, Finance & Development Planning and technical reviews.
The exercises formed the basis for what, in the wisdom of the Honorable House of Representatives, is a reasonable and nationalistic decision.” The House added, “additionally, the due diligence exercised on the proposed ArcelorMittal Liberia (AML) Mineral Development Agreement (MDA) established series of observations that the House of Representatives wishes to bring to your attention.”
The House went on to list the following observations to the President:
“The Impact of the proposed Amendment on the existing Treaty signed between the Republic of Liberia and the Republic of Guinea on the ownership, operatorship and users’ rights of the railroads as enshrined in Article 3 and other Articles of the proposed Third Amendment;”
The House also indicated at the time “that the proposed Amendment essentially ignores key provisions of the Minerals and Mining Law of the Republic of Liberia.” In particular the applicable law states that “in the event where the holder of an exploration license declares only a portion of the exploration area as an operation area, the remaining portion not declared must be relinquished to the Government and that the exploration license shall cease to exist.” In essence, ArcelorMittal was not abiding by the law, and an Agreement was submitted to the House that was in direct conflict with existing laws and regulations.
This is exactly what ArcelorMittal is presently doing in the current Boakai Administration at the negotiating table, by submitting an instrument to the Inter-Ministerial Concessions Committee (IMCC) that completely ignores current law, in particular the Executive Order 136.
The House of Representative also told then President Weah in 2022, that “the proposed Amendment prevents the Government from transferring the Buchanan Iron Ore Port which has not been transferred but has been made available for use in the operation for the Concessionaire.” In essence, ArcelorMittal made no provisions to share the Buchanan Iron Ore Port but instead to fully control it for its exclusive purposes.
The House of Representatives then made the following three recommendations to President Weah on ArcelorMittal:
“That the Government of Liberia retains ownership of the Railroads, Port of Buchanan and other related infrastructures. The Honorable House of Representatives further recommends that the Government of Liberia initiates a recruitment process aimed at hiring an independent operator of the railroad. In the opinion of the Honorable House of Representatives, this will ensure a non-discriminatory management of the Railroads and other related infrastructure.”
“That a future renegotiation of this concession, other existing concessions and new concessions gives consideration to the full application of all relevant laws including the Act creating WASH Commission and the Land Rights Law.”
“That future amendments to the AML MDA, other existing concessions and/or new concessions consider a role for the National Housing Authority to ensure standard and improved housing facilities for employees and their dependents.”
In his May 16, 2022, response to the House of Representatives, President Weah then wrote, “Let me first express my appreciation for the diligence shown by each of you as you exhaustively reviewed the terms of the proposed amendment No. 3 in the interest of the country.
” He went on to say, “while I continue to believe that the expansion of ArcelorMittal operations by the addition of a concentrator and the increase of production to 15 million tons of iron ore is in the best interest of the country and people, I have taken keen note of your points you have made that caused you to decline to ratify Amendment No. 3 to that agreement.”
President Weah then wrote a letter to the then Chairman of the National Investment Commission (NIC) sending the ArcelorMittal instrument back for renegotiation upon its rejection by the House of Representatives.
