https://www.liberianobserver.com/ Liberia's First Independent Daily en Sat, 04 May 2024 22:26:23 +0000 Thu, 31 Mar 2022 07:21:11 +0000 https://www.liberianobserver.com/liberia-aml-concerned-about-status-third-amended-mda ... Says it reaffirms commitment to Liberia  ArcelorMittal Liberia has disclosed that it “has learned through unconfirmed media reports” that the House of Representatives has made appointments to the conference committee and some other decisions over the past few days regarding the… dyates460@gmail.com (David A. Yates) 1b4d9fe5-c230-4c55-82c0-2392266f62b5 Thu, 31 Mar 2022 07:21:11 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/liberia-houses-letter-weah-explains-rejection-aml-deal “... the due diligence exercised on the proposed ArcelorMittal Liberia Mineral Development Agreement established a series of observations that the House of Representatives wishes to bring to your attention,” says House of Representatives The most significant foreign direct investment to be… dopoejr@gmail.com (Robin Dopoe) 4fa89457-52aa-49e3-a98d-4e845642e2bb Wed, 30 Mar 2022 07:11:13 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/liberia-house-rejects-arcelormittals-monopolistic-clauses ... “The proposed amendment as written by AML is highly disadvantageous to a poor struggling country Like Liberia.” Editor Note: The full text of the House’s amendments to the ArcelorMittal MDA can be found via this link, while the original MDA can also be found here. The House of… lmsonpon@gmail.com (Leroy M. Sonpon 9903f2e8-a816-4fa0-accf-15bed68aedab Fri, 17 Dec 2021 07:20:21 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/liberia-enough-enough-people-liberia-have-spoken In the wake of ArcelorMittal’s vicious smear campaign directed against the Daily Observer, the Joint committee of the House of Representatives has seen through the lies and half-truths being sold to the public and has taken a definitive stance on the Agreement. The House of… 536e4074-3129-45bd-8820-3f39da73a5b6 Fri, 17 Dec 2021 06:50:12 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/liberia-have-they-not-heard-maxim-says-truth-crushed-earth-shall-rise-again – the case of Mittal Steel ArcelorMittal Liberia (AML) the iron ore and steel conglomerate has from all indications stepped its campaign of misinformation by feeding false narratives to the public all in an image building attempt to wipe clean her slate of broken promises, unbridled greed… 1b8f56ac-d68d-4959-b288-38d6663f1b24 Thu, 16 Dec 2021 04:34:08 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/liberia-reject-mittal-steel-amended-agreement From the look of things, the Legislature appears set to approve the controversial extension of the Mittal Steel Agreement, despite public protest and calls from Project Affected Communities (PACs) to reject the terms of the Agreement. This is because the communities in which the company… 081ab34f-82f1-46ed-ae98-74dee56639e9 Thu, 09 Dec 2021 08:03:01 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/liberia-gol-struggling-justify-aml-us800m-deal – Legislature demands GOL provide compliance reports on ArcelorMittal as Finance Minister admits problems with the deal Both houses of the Liberian Legislature have begun separate hearings into the third amendment of the ArcelorMittal Liberia (AML) mineral development agreement (MDA), citing relevant authorities to give justification as to whether or not the deal should be endorsed by the legislature for the next 25 years.  While they have not yet gotten to the most contentious part – who controls the Yekepa-Buchanan railway and port – there are already signs of more questions than answers. This is in spite of the urgency that President Weah has attached to the matter, that the Legislature ratify the amended agreement before December 31, 2021.  With barely four weeks to the deadline, hearings in both houses started with issues of environmental compliance.  At the first public hearing into the matter by the Senate Joint Committee on Mines, Energy, Natural Resources and Environment, Concession and Investment as well as Judiciary requested for a compliance report of ArcelorMittal since the beginning of the Company’s operations in Liberia. The invited ministries and agencies of government, which are responsible to regulate concessions and concessionaires, are expected to give a detailed explanation on the third amendment of the Arcelormittal Liberia agreement, to the tune of US$800 million. The committee is also requesting an audit report so as to put the Senate in an informed position to either ratify the new agreement or not.  The hearing, held in the Senate Annex Chambers, was intended for the relevant Government institutions to explain reasons why the Liberian Senate should ratify the US$800 million concession deal for the next 25 years. The Minister of Mines and Energy, Gesler Murray, informed the Joint Committee that ArcelorMittal Liberia wants to organically grow its iron ore mining project from the planned 15 million tons per annum (mtpa) to at least 30 mtpa over the next decade. For his part, Finance and Development Planning Minister, Samuel Tweah, told the Joint Committee that the expansion will create massive revenue benefits to the Government of Liberia including additional investment and job creation and also make Liberia one of the largest iron ore exporting countries in the world. Minster Tweah admitted that the deal may not be as 100 percent, but the government has been on the back of the company for improvements, and asserted that the company has been paying its financial obligation to the government. He added that if the Arcelormittal US$800 million amendment is not ratified by December 31, 2021, the government will experience constraints as the company will not pay the US$30 Million up front as promised; at which time the government will seek another means to pay its workers. For his part, the Minister of Justice, Cllr. Frank Musah Dean, re-echoed that the 3rd Amendment to the MDA is intended to ensure that the U$800 Million Arcelormittal expansion project, if ratified, there will be further expansion of the railway for other usage and improvement of the Port of Buchanan. Minister Dean further reminded the Joint Committee of Article 3, section 2 of the 2007 Amended Arcelormittal Mineral Development Agreement, which states; “that the concessionaire has the right to request an extension of the term for additional 25 years upon notice to the Government, along with submission of a revised feasibility study and the MDA may be amended upon terms to be agreed to by the parties” the Minister concluded. House Hearings Meanwhile, at the House of Representatives, hearings into the 3rd Amendment to the Mineral Development Agreement of ArcelorMittal Liberia Holdings Limited and ArcelorMittal Holdings A.G. and the Government of the Republic of Liberia also started December 6, by the House Joint Committee on Investment and Concession, Judiciary and Ways, Means, Finance & Development Planning with Liberia Land Authority and the Water Sanitation & Hygiene Commission appearing. The Land Authority and WASH Commission gave their perspectives on some important issues that should be in the MDA before approval by the Legislature. For Instance, the National WASH Commission is concerned about the free extraction, use, pollution and discharge of water. The Commission said it would like for there to be included in all concession agreements licensing for water extraction, use, pollution and discharge. The Commission said it would also like to see a waste management plan in the concession areas. The Land Authority expressed concern about the land ownership for inhabitants and communities in concession areas. The AML’s third amendment, featuring an US$800M Investment in Liberia, will provide the Government of Liberia with US$55 million within 19 months of ratification. The Government and ArcelorMittal Holding A.G. made and entered into a Mineral Development Agreement (MDA) on August 18, 2005, which was ratified by the Legislature, signed by the President, and printed into handbills.  The Agreement has gone through two different amendments on December 28, 2006, and January 23, 2013, respectively. The next hearing is scheduled for Wednesday, December 9, 2021, when the National Investment Commission, Justice, Mines & Energy will be in attendance to give their technical perspectives as well. liberianobserver@gmail.com (Staff Editor) fbf3e107-ecdd-4cf6-abf3-26c11059615b Tue, 07 Dec 2021 03:54:05 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/libera-too-much-uncertainty-arcelormittal-liberia-revised-mda It has been well over 45 calendar days (that is, 31 working days) since a consortium of independent news media organizations made a formal request to the Government of Liberia, through the Ministry of Mines and Energy, with notifications to several other entities including the Ministry of… af208e3f-3976-415d-9969-91ed050531b8 Thu, 02 Dec 2021 07:05:33 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/liberia-house-probes-arcelormittals-800m-investment ... For an additional 25-year extension The House of Representatives has begun probing the amended Mineral Development Agreement between the government and ArcelorMittal Liberia. The deal is for the extension of AML’s operation in Liberia for another 25 years, which ends on December 31,… lmsonpon@gmail.com (Leroy M. Sonpon 180ce10f-f023-406e-9704-c95a7e047ba0 Wed, 24 Nov 2021 04:59:07 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/aml-provide-jobs-diaspora-liberians ArcelorMittal Liberia (AML) has accepted a recommendation from the Government of Liberia, through the Ministry of Labour, to provide jobs for Diaspora Liberian professionals, instead of prioritizing expatriates.  This move by the global steel giant comes on the back of hefty… 788a5a7f-f51d-48ec-92b2-e9e8174bdcf2 Fri, 19 Nov 2021 03:42:54 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/hpx-we-would-work-closely-arcelor-benefit-liberia Ivanhoe Liberia, the company acting on behalf of High Power Exploration (HPX) in Liberia to ship iron ore from the Nimba Mountain in Guinea via rail through the port of Buchanan, says ArcelorMittal Liberia (AML) should not feel concerned by its presence in Liberia, as HPX is more than… bsgbest@gmail.com (Bai S. G. Best) a744ddde-4ff0-493f-9430-24e6c57b8b3f Mon, 15 Nov 2021 21:20:00 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/us27bn-iron-ore-project-guinea-benefit-liberia — 500 jobs and US$600M infrastructure investments planned for Liberia One of the world’s leading global investors in Iron Ore is looking to invest in Liberia in a major way, through the use of the rail linking Yekepa and the Buchanan Port to transport 30 million tons of ore per year from its… liberianobserver@gmail.com (Staff Editor) 70ff9734-6eca-4047-beeb-7a7bbbe123d6 Fri, 12 Nov 2021 02:47:00 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/mineral-development-agreements-need-transparency-and-better-scrutiny-lawmakers Numerous concerns have been raised through media reports and editorials about the questionable nature of the BAO CHICO mineral development agreement (MDA). And what has the government of Liberia done so far? It has played deaf ears to the matter. And since, according to President George… 4bc1b98e-c500-4927-8e23-5378179de508 Mon, 08 Nov 2021 07:17:33 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/no-free-ride-concessions-deals “When the Executive looks at agreements, they do so looking at the holistic national interest but, when it comes to us, we do a little more scrutiny,” says Deputy Speaker J. Fonati Koffa A high-ranking official of the House of Representatives has disclosed that stricter scrutiny of the US$… dopoejr@gmail.com (Robin Dopoe) 100b6ef9-0bf5-492c-8f12-5da0245315cf Thu, 28 Oct 2021 08:07:00 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/due-diligence-too-much-ask-our-legislators     a7eb5630-5d29-4308-be39-cdb6eb4d0024 Tue, 26 Oct 2021 03:18:03 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/aml-agreement-liberias-best-interest-rail -- U.S. Ambassador The United States Ambassador to Liberia, Michael McCarthy, on Tuesday, October 19, diplomatically endorsed the US$800 million ArcelorMittal Mineral Development Agreement (MDA) in spite of strong rejection from hundreds of citizens in Nimba County, especially those who live… dyates460@gmail.com (David A. Yates) b72274ce-d884-4669-8c0e-0964dbe58aeb Thu, 21 Oct 2021 09:07:00 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/poro-society-masters-halt-aml-operations-yekepa Steel giant ArcelorMittal was forced yesterday to shut down its Yekepa operations after members of the secret poro society made an unannounced visit to protest against alleged neglect by the company. The strike action, which is highly unprecedented for members of the highly respected… ifmenkor@gmail.com (Ishmael F. Menkor) 0919e244-a992-4494-bd46-4522a5db1127 Tue, 19 Oct 2021 02:14:00 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/we-hope-not-not-time-heavens-sake The company maintains that contrary to claims by the affected communities, Mittal Steel has undertaken a major renovation of the existing infrastructure and has upgraded health facilities within and without its concession area at a cost of US$18 million. ArcelorMittal further claims that in keeping with the Mineral Development Agreement, it has rehabilitated two (2) hospitals in Yekepa and Buchanan respectively, with over thirty-thousand (30,000) people receiving medical care from those facilities. It further added that US$1.7 million has been spent on advanced foreign scholarships amongst other notable achievements the company boasts of.    But if indeed ArcelorMittal has or is scoring such impressive gains, as it would like the public to believe, then why are the people of Grand Bassa and Nimba Counties objecting to the extension of its amended agreement as well as the ratification of newly proposed amendments? In fact, the amended agreement is shrouded in secrecy and, according to informed sources, the proposed amendments also include the provision of a binding non-disclosure clause.  Just what is ArcelorMittal trying to hide from the government or the public and vice versa? What is the government hiding from the Liberian people by agreeing to accept or include a binding non-disclosure clause in the agreement?  For the benefit of the public, ArcelorMittal, as well as those government officials responsible for negotiating amendments to the Agreement, should make public disclosure of what is being proposed to be kept secret and away from the prying eyes of the public. This is in keeping with transparency and best practices worldwide. Moreover, ArcelorMittal, in its robust response to public concerns about its failure to honor its contractual obligations and commitments, has failed to comment on reports that it paid very little in revenue to the government of Liberia.  As a matter of fact, there is evidence that export tax was waived for 2017 and 2018. Over the same period, Mittal Steel produced 1,306,052 and 3,186,254 tons of iron ore, while prices stood at US$46 and US$86 per ton respectively. Had the 10% export tax rate not been rescinded to zero percent by the Sirleaf administration, Liberia in 2017 and 2018 would have received US$5,469,457.00 and US$27,366,735 respectively, vis a vis the US$54,697,457.00 and US$273,667,356.00 respectively, over the same period. Additionally, going by the Liberia Extractive Industry Transparency Initiative (LEITI) 2016/17 report, ArcelorMittal paid the amount of US$220,000 in taxes to the Liberian government. In 2017/2018 it paid US$131,930 in taxes. By contrast, over the same period, Liberians, in general, paid US$53 million in taxes to the government of Liberia. That being the case, just why ArcelorMittal reneged on its contractual obligations and commitments (the payment of US$3 million annually to Grand Bassa, Bong, and Nimba Counties), given it enjoyed very low or zero export tax rates, is the question begging for answers.  But it would be unfair to blame ArcelorMittal alone for this state of affairs. The government of Liberia also bears a fair share of the blame. For example, May 20, 2019, Liberia Domestic Policy Review Notes states that Liberia does not collect adequate revenue from her natural resources, despite its rich natural resource base. It points out the following flaws noting that Liberia: Does not devote enough attention to enforcement of the applicable tax legislation.  Grants tax exemptions in a discretionary and non-transparent way; and  Does not apply fiscal transparency rules related to natural resources Now enter ArcelorMittal with a proposal to increase its investment in Liberia by an additional US$800 million. The Yekepa-Buchanan railway and the Port of Buchanan is ceded to the ownership and possession of ArcelorMittal in the proposed amended agreement, awaiting ratification by the Legislature when it returns from break.  Further, in the proposed new amendments, ArcelorMittal is to significantly reduce the annual payment of US$3 million in Corporate Social Responsibility fees to Nimba, Grand Bassa, and Bong Counties. Given ArcelorMittal’s robust response to claims about its corporate behavior, it remains to be seen to what extent such a media blitz can do to counter adverse public opinion heightened recently by negative impression and reports emanating from visits paid by Nimba legislators to the Mittal Steel Concession area in Yekepa and Buchanan.   If Mittal Steel does mean well, it would have no reason to renege on its contractual obligations and commitments. Further, it should seek to become more transparent and should give strong consideration to the scrapping of the non-disclosure clause in the Mineral Development Agreement. Additionally, it should seek to become more attuned to the needs and aspirations of local communities rather than pander to greedy officials in return for favorable concessionary terms that militate against the interests of the country and its people. Now that the matter has drawn much public attention, the Liberian people should not expect anything less than a rigorous examination of the proposed amended agreement in all its details, leaving nothing to chance. It can be recalled that according to the Moore-Stephens report,  under the watch of former President Sirleaf, out of a total of 66 concession agreements signed into law, 64 did not meet the test of transparency and were considered fraudulent. Such predatory agreements like the APM Terminals agreement etc., made possible through outright bribery of legislators, have come to haunt us today. This crop of Legislators should not let down the hopes of the Liberian people this time around. WE HOPE NOT, not this time for heaven’s sake! fd99fa36-6286-4715-999e-47b9be3a23e2 Fri, 08 Oct 2021 03:39:15 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/remove-non-disclosure-clauses-all-concession-agreements-and-make-public-details-solway-mining-inc ..... And Make Public the Details of the Solway Mining Inc., mineral development agreement Coming fast on the heels of expressed opposition to the amended Mittal Steel Agreement by people of Nimba and Grand Bassa Counties for failing to honor its contractual obligations to those counties,… 410b2708-b03c-43ad-9b2c-3bc6207b994a Wed, 06 Oct 2021 07:44:41 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/arcelormittal-liberia-defends-record-amid-rebuke ... But for AML, while the criticism might be genuine, it does not represent the truth. ArcelorMittal has defended its operation in Liberia as outrage grew over its US$800 million amended agreement signed with the government, which paved the way for the expansion of the company’s mining and… dopoejr@gmail.com (Robin Dopoe) f8d5b659-c009-4e9f-83dc-c78f324ea181 Wed, 06 Oct 2021 07:36:55 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/reject-aml-us800m-agreement …Liberian lawmakers urged The Liberian People’s Party (LPP) has concurred with the decision of the citizens of Grand Bassa and Nimba Counties and asks the lawmakers to reject the latest ArcelorMittal Liberia US$800 million amended agreement signed with the government.  Such a move,… dyates460@gmail.com (David A. Yates) 977e25b9-ad7a-47f4-b81c-727595b2e317 Tue, 05 Oct 2021 07:50:55 +0000 Liberian Observer - Liberia's First Independent Daily https://www.liberianobserver.com/another-locomotive-derailed -- ArcelorMittal Liberia attributes the latest instance to ‘criminal activity ArcelorMittal, the Indian steel giant that is operating in the Nimba Mountains in the mining town of Yekepa, has reported another derailment of its locomotive.  According to a release issued by the company… jmsendolo@gmail.com (Joaquin M. Sendolo) 24e72ad7-9d34-4f6a-b29c-0d2e0d18ab1c Thu, 23 Sep 2021 06:27:47 +0000 Liberian Observer - Liberia's First Independent Daily