By: Creamer media

The agreement solidifies ArcelorMittal’s long-term mining expansion and commitment to Liberia, the company highlights.

It also allows for government’s aim to make the Tokadeh to Buchanan rail corridor accessible to multiple users.

ArcelorMittal highlights the recent inauguration of the iron-ore concentration facility at Tokadeh in Nimba county, with this being the centrepiece of its $1.8-billion expansion project, bringing the company’s total investment in Liberia to $3.5-billion.

The expansion project also involved considerable investment in the rail infrastructure running between Tokadeh and Buchanan; upgrades to the existing port infrastructure, including construction of an additional berth at the port in Buchanan; and other infrastructure investments, including two power plants.

The expansion project, which is nearing completion, will result in iron-ore shipments increasing from about five-million tonnes a year to 20-million tonnes a year from this year, alongside improvements in product quality to higher-grade, higher-value ore.

ArcelorMittal is also undertaking feasibility studies for further expansion of its iron-ore asset above this figure.

The agreement also makes provision for a multi-user agreement regarding the use of the rail infrastructure, where other users who wish to use this infrastructure are required to invest in its expansion to meet their transportation needs.

ArcelorMittal is currently expanding the railway infrastructure so it can transport up to 30-million tonnes a year of iron-ore, should the feasibility studies it is undertaking prove successful and a decision is taken to expand iron-ore production beyond 20-million tonnes a year.

This railway capacity will be reserved for ArcelorMittal’s use.

Under the terms of the MDA, ArcelorMittal will pay $200-million to the government for certain rights it acquires, including mining rights extension and reserved access to railroad capacity the company is investing in.

“ArcelorMittal Liberia is one of Liberia’s largest private sector investors and a leading employer in the country. I welcome this third agreement to the concession agreement, which will unlock a major expansion of ArcelorMittal Liberia’s operations, with production increasing to 20-million metric tonnes and projected to grow to 30-million metric tonnes,” says President Joseph Boakai.

“The agreement will establish an independently operated railway from October 2030, which will strengthen efficiency, promote multi-user access, and deepen the overall impact of the concession on the national economy.

“The agreement will provide a significant boost to Liberia’s economy through increased employment opportunities and enhanced growth in host communities,” he adds.

“This agreement represents a defining moment for both Liberia and ArcelorMittal. I must thank President Boakai and his administration for their commitment to this partnership which will reinforce Liberia’s role in Africa’s mining sector.

“Having recently inaugurated our state-of-the-art concentrator, the agreement further cements our long-term presence and commitment to Liberia. We are proud of the positive impact we have had on the country over the last 20 years and look forward to many more years of successful partnership and shared ambition to create sustainable growth and secure long-term benefits for Liberia’s economy and people,” says ArcelorMittal executive chairperson Lakshmi Mittal.

“ArcelorMittal has made a significant impact on the development of Liberia’s economy over the past 20 years. It currently provides direct and indirect employment for approximately 8 000 people, is one of Liberia’s largest tax contributors and has made investments in a variety of housing, healthcare and education projects,” he outlines.

“The amended agreement will deliver greater benefits for communities near ArcelorMittal’s operations and sets the stage for transformative economic growth in Liberia. Over the next 25 years and beyond, Liberia will see a substantial rise in royalties and tax revenues due to ArcelorMittal’s significant investment and expanded iron-ore production.  

“The quadrupling of output and exports in 2026 will drive Liberian GDP and deliver wide-ranging economic benefits, including creating new opportunities for local procurement and stimulating the growth of small and medium-sized businesses nationwide,” Mittal predicts.