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MONROVIA While the Liberian Senate is still debating how impactful the amended Mineral Development Agreement of ArcelorMittal would be on the country and its economy, the Vice President of the European Union Parliament for Foreign Affairs and Security Policy, Joseph Borell, says the amended Agreement is important to Europe and has benefits for Liberia.

Mr. Borell was answering to a concern by a Romanian politician and a member of the European Union Parliament raised a question on the floor on the Union Parliament. His question was to ascertain the EUs awareness of the controversies surrounding the amendment and the concerns raised against it both in the mainstream and social media and whether the concerns have been raised with the authorities.

He also sought to ascertain if the new MDA is compatible with the EUs objectives of promoting good governance and sustainable development in Liberia.

The proposed Agreement, the third amendment to the original MDA signed in 2005, has already been passed by the House of Representatives and forwarded to the Liberian Senate for concurrence. The Agreement, among other things, called for ArcelorMittal to make US$800 million investment in Liberia, employed over 1,000 Liberians and provide the Government of Liberia with US$55 million within 19 months of ratification.

In his response, Mr. Borell, who is the Union Parliament High Representative for Foreign Affairs and Security Policy stated that EU is aware of the amendment to the MDA currently before the Liberian Senate for ratification.

The amendment seeks to expand ArcelorMittals mining logistics operations in Liberia. It is expected to boost the economy with some US$800 million investment.

Mr. Borell: The AM investment is by far the largest in the country and will be one of the largest mining projects in West Africa. One of the objectives of the amended MDA is to share the railway among the three mining companies in Liberia and in Guinea so that transport services are open to the two other mining companies in Guinea.

He continued: The EU is promoting good governance and the rule of law and supporting sustainable and inclusive development in its policy dialogues and cooperation with partner countries, including Liberia. This includes the promotion of human rights and responsible business conduct in line with United Nations Guiding Principles, and applies to all sectors of intervention, including mining. There are benefits for the country and its citizens, foreign investments being essential for Liberias development. For the EU this investment, with its link to the viability of a decarbonised steel industry in Europe, is of high importance.

The EU will continue its dialogue on economic governance with the government, to support responsible mining practices in compliance with the internationally agreed labour and environmental standards and the Extractive Industries Transparency Initiative.

Reducing the CO2 intensity of the energy intensive industries in general and the global steel sector in particular is crucial for meeting the objectives of the Paris agreement and the EUs own climate targets. The EU steel industry currently accounts for 221 Mt GHG emissions annually (including both direct and indirect emissions). This is 5.7% of total EU emissions. Energy-intensive industries altogether accounted for 665 Mt GHG emission (only direct emissions), 15% of the EU total.16 To meet the ambitions of the European Green Deal, the steel industry has to transform itself in order to stay competitive.

Sharing the Railway

In a recent exclusive interview with FrontPageAfrica, the top management of ArcelorMittal Liberia debunked report that it is opting for sole ownership right of the railroads and port of Buchanan in the current proposed amendment of the MDA.

Since its passage by the House, there have been series of reports of an eminent deadlock over some of the new clauses inserted by the House. A notable one borders on the ownership right of the railroads and port of Buchanan.

According to the Houses Joint Committee on Investment and Concession, Ways, Means & Finance, Judiciary, Lands, Mines & energy and Environment, Article 3 of the proposed Amendment called for the company to have exclusive rights over Liberias railroads and the Port of Buchanan; something the Joint committee sees as a complete monopoly of the governments two major infrastructures.

In the amendment, the Committee called on the government to take ownership of the railroad, Buchanan Iron Ore Port and related Infrastructure. It called for the infrastructure to be structured, regulated, expanded and managed on a non-discriminatory multi-user basis for the benefit of all eligible applicants and the Republic of Liberia.

The Interim Chief Executive Officer of AML, Mr. Mahamar Haidara said since 2007, the Government of Liberia has exercised ownership of the rail and port infrastructure, and the current proposed amendment provides further rights to the Government.

GoL is the owner of rail and port infrastructure since 2007 and this Amendment provides further rights to the Government of Liberia on who can utilize the infrastructure corridor, he said.

We need to be careful about some misinformation campaign and propaganda being run in this regard by some vested interests, as ArcelorMittal is investing heavily in Liberia to further expand existing operations to unlock Liberian Iron ore resources for benefit of its people compared to others who are still making studies for potential development of Iron Ore resources for neighboring country with only nominal transit fee benefit for Liberia.

Mr. Haidara said the agreement strengthens GoLs demand for other users including Guinean miners to utilize the Liberia infrastructure for their export; adding that the other users will need to invest to increase the capacity of the rail and port for their own use.

He furthered that the third amendment ensures that AML cannot obtain any monetary benefit from other users of the rail and port. AML also cannot allocate the rehabilitation costs that it has already incurred to other users. These users will have to pay a transit fee only to the Government of Liberia.

Long and Exhaustive Process

The AML Acting CEO, commenting on the process in crafting the agreement said, it was a long and exhaustive process; lasting over 51 weeks and included top officials of the Liberian government, particularly the Executive, senior Government lawyers, members of the Inter-Ministerial Concession Committee and various international (US & Europe) advisors to the Government and executives of ArcelorMittal.

He said AML also discussed with the Government its plans for organic growth in Liberia. With the existence of a large iron ore resource body in Nimba, he noted that AML plans to expand its operations from 15 mtpa to 30 mtpa, which will generate huge benefits for Liberia. He clarified that the planned expansion will not prohibit others from using the rail infrastructure as they can do so beginning in 2025.

Said the AML Interim CEO: The Amendment to the MDA includes an obligation for AML to present its feasibility study for the 30 mtpa tentative plan to the Government in 2023. The expansion to 30 mtpa in Liberia will further increase investments and benefits for the government and people of Liberia. Current estimates suggest that AML can produce at this level for about 50 years, making the AML Iron Ore operation in Liberia the largest on the African continent. With ArcelorMittals focus on decarbonization for its steel making, the superior Liberia concentrate product in future will be the appropriate ore for steelmaking.

Originally posted here:
Liberia: 'ArcelorMittal Amended MDA is of High Importance to the EU' - European Union Parliament High Representative - Front Page Africa