Government Of Liberia And ArcelorMittal Sign Amended Mineral Development Agreement Extending Concession To 2050
The Government of the Republic of Liberia and ArcelorMittal have signed an amendment to the existing Mineral Development Agreement, which has been ratified through the Liberian legislative process. The amendment extends the duration of the agreement to 2050, with a right to renew for a further 25 years.
The agreement reinforces ArcelorMittal’s long-term mining expansion and commitment to Liberia. It also provides for the Government’s objective of making the Tokadeh to Buchanan rail corridor accessible to multiple users.
The signing follows the recent inauguration of ArcelorMittal’s iron ore concentrator facility at Tokadeh in Nimba County. The concentrator is described as one of the largest and most technologically advanced iron ore beneficiation plants in Africa and forms the centrepiece of the company’s US$1.8 billion expansion project.
The expansion programme brings ArcelorMittal’s total investment in Liberia to approximately US$3.5 billion, representing the largest foreign direct investment in the country’s post-war economy. In addition to the concentrator, the project includes significant upgrades to the rail infrastructure between Tokadeh and Buchanan, improvements to port infrastructure at Buchanan, including construction of an additional berth, and other infrastructure investments such as two power plants.
The expansion, which is nearing completion, is expected to increase iron ore shipments from historic levels of approximately 5 million tonnes per annum to 20 million tonnes per annum in 2026. Production improvements will include higher grade, higher value ore. The company is also undertaking feasibility studies to assess further expansion beyond 20 million tonnes per annum.
The amended agreement provides for a multi-user framework governing use of the rail infrastructure. Other users seeking access to the corridor will be required to invest in expansion capacity to meet their transportation requirements. ArcelorMittal is currently expanding the railway to support potential capacity of up to 30 million tonnes annually. Should production expand beyond 20 million tonnes per annum, that capacity will be reserved for ArcelorMittal’s use.
Under the terms of the agreement, ArcelorMittal will pay US$200 million to the Government of Liberia in consideration for extended mining rights and reserved access to railway capacity linked to its investment programme.
ArcelorMittal currently provides direct and indirect employment to approximately 8,000 people in Liberia and is one of the country’s largest taxpayers. Over the next 25 years and beyond, the amended agreement is expected to increase royalties and tax revenues, support host communities, expand local procurement opportunities, and contribute to national economic growth as iron ore output and exports increase significantly.
