How AML Revised MDA Might Undermine Liberia, Guinea Bilateral Agreement

How AML Revised MDA Might Undermine Liberia, Guinea Bilateral Agreement

By Jacob B. Harris, from Nimba County

A few months ago, the Government of Guinea and Liberia signed a bilateral framework agreement to allow mining companies in the sister country to use the rights guaranteed under the framework to transport iron ore from Guinea via the railroad from Nimba County to the Port of Buchanan in Grand Bassa County. 

The Agreement represents a legal, institutional and operational framework between the two countries, which provides for the evacuation of Guinean mining products and derivatives for export.

The Agreement also facilitates the importation to Guinea by mining operators of goods used for mining projects in Guinea as well as the achievement of multi-use transport Infrastructure – beyond mining products - in the long term.

It also ensures that Guinean Mining Projects can, via the use of Transport Infrastructures and Transport Services, efficiently achieve the export of mining products from Guinea, the import of goods related to the mining projects, and the circulation of personnel.

And called for Liberia to obtain better value for its Transport Infrastructures and Transport Services through the sharing of capital, operating and maintenance costs for such projects. Local and regional mining operators CAN ACTUALLY and CONSTRUCTIVELY BE BLOCKED from using the rail and port by ArcelorMittal Liberia. 

THE LEGISLATURE MUST REJECT THIS AMENDMENT because it GROSSLY CONTRADICTS the general objective of the Bilateral Agreement which is in line with the African Mining Vision.

THE LEGISLATURE MUST REJECT THIS AMENDMENT because it GROSSLY VIOLATES the principles of economic integration adopted at the Economic Community of West African States (ECOWAS) and Mano River Union (MRU) level.

THE LEGISLATURE MUST REJECT THIS AMENDMENT because it ACTIVELY AND CONSTRUCTIVELY BLOCKS the promotion of shared use of transport infrastructures at national, sub-regional, and regional levels in order to bolster mining development.

THIS AMENDMENT MUST BE REJECTED because it EFFECTIVELY BLOCKS Liberia's perfect opportunity for contributing to sub-regional integration of the economies of Guinea and Liberia, and potentially the advancement of trade in Mali and Burkina Faso.

This AMENDMENT MUST BE REJECTED because it STOPS GOL from GENERATING MORE THAN US$2 BILLION IN RAIL USE FEES ALONE, ignoring BILLIONS MORE IN PORT CHARGES.

Other companies with legitimately issued mineral rights want no interference with their Production Areas currently under Exploration Licenses with the Government.

Sound economic policy by GOL must promote uninhibited Multiple Third-Party Use of the Rail and Port, NOT MONOPOLY! The more should be the merrier.

The GOL MUST SHIFT RELIANCE from just one mining project, and encourage multiple players to support its national growth and development agenda.

If 4 Mining Operators collaborate in railroad and port expansion, the average cost of moving iron ore per ton gets significantly lowered, and Liberia's GDP expands astronomically. This expansion will translate into increased job creation and massive growth in incomes, ensuring greater development of the corridor, through which other industries can benefit.

 In this age, GOL should be trumpeting the cause of promoting Regional Integration and Development through imminent projects to advance Trade Liberalization with all Member States within Ecowas and the Mano River Union.

The President’s promise as enshrined in the Implementation Agreement should be strengthening his commitment to multiple users of the railroad and port, and should not be undermined by this proposed MDA Amendment between GOL and Mittal.

It is stated in Article 25 of the Constitution of Liberia that the “obligation of a contract shall be guaranteed by the Republic and no laws shall be passed which might impair this right.”

Rushing forward with this Amendment #3 of the AML MDA GROSSLY VIOLATES the Bilateral Implementation Agreement.  Major international Litigation awaits the GOL should Exploration Licenses of other companies in the Old LAMCO Concession Area be revived. 

Therefore, it is recommended that the Legislature OUTRIGHTLY REJECTS Amendment #3 of the AML MDA. There is NO RUSH! AML still has 9 more years under their current MDA. The Agreement must be revised. The sky is not falling down!

Hurry, hurry will definitely burst trousers. It is necessary to follow the proper steps and procedures required by law!

In law, it is stated ANY LAW TO CONTRARY NOTWITHSTANDING! If the Legislature rushes with the AML MDA, which contravenes many other Agreements already signed by the Government of Liberia, it would have itself to blame for the many lawsuits that will fly left and right from international quarters.

LEGISLATORS, PLEASE REJECT THIS AML MDA AMENDMENT $3!

A HINT TO THE WISE IS QUITE SUFFICIENT!