The Liberian Government is exploring a multi-million dollar deal that will see a Brazilian company restore the Mount Coffey Hydro Plant, thereby restoring electricity to a huge portion of the country, if discussions are fruitfully finalized.
The Brazilian Company BDG-Vale BFGR Liberia Ltd. (Vale for short) has "agreed in principle" to revamp the hydro plant, but the agreement has not been finalized duet to some "sticky point" which are "legal in nature" Cabinet Director Dr. Mono Rogers disclosed Monday.
The discussion between the Company and the Liberian Government is based on the fact that the construction company is poised to undertake a US$1.5 billion project to link the Port of Buchanan (in the capital of Grand Bassa County, Liberia) with the Republic of Guinea, to easily facilitate the export of iron ore and bauxite from the sisterly country to the outside world.
The Port of Buchanan is currently the second largest in Liberia, and is currently receiving lager ship than the Free Port of Monrovia, which is now under the controls of APM Terminals, for rehabilitation.
Reports are that the distance between the mining site and the Port of Guinea in the West Africa state is very far and would be extremely costly to venture into building a new road or a railway to connect the Port of Guinea.
Therefore, the Port of Buchanan, which is much closer to Guinea, has been deemed the best alternative, meaning iron ore and bauxite mined in the mineral rich nation would now be exported through the Liberian Port, after the proposed railway is built.
Addressing the Executive Mansion regular press briefing Monday, Dr. Rogers disclosed that Liberia would immensely benefit from the venture because the country's land would be used in the process.
In exchange of the land that will be used (inside Liberia) to build the railway, Dr. Rogers said the Company has "agreed in principle" to restore the country's highest pre-war electricity generating plant (which cost is estimated at US$200 million), build smaller roads and provide other social services.
"It is a good venture. This is the only concession that is not concentrating on our forest and mineral resources, but the land," Dr. Rogers said.
The Inter-Ministerial Concession Committee (IMCC), headed Minister of Justice (the IMCC is usually headed by the National Investment Commission (NIC), but due to the legal implications involved with the deal, the Minister of Justice is heading the discussion) currently discussion the agreement.
Dr. Rogers said it was agreed during last Friday's (Feb 18)cabinet meeting that the Ministry of Justice chairs the IMCC with respect to the Brazilian company's deal because it involves Liberia, Guinea and the company, and is more legal than just investment.
'I want to clarify here that the chair of the IMCC is still the NIC, and not the Ministry of Justice,' Dr. Rogers noted, clarifying a press release he issued earlier, indicating that the Chairmanship of the IMCC has been transferred from the NIC to the Ministry.
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Whoever the writer of this story might be, should stop writing these lies. Every time, the Government of Liberia is making multi-billions dollars deal. We heard that Mittal Steel was bringing multi-billion dollars investment. To this date, she can not fix the railroad between Grand Bassa County and Nimba. Mittal Steel blames the global economy. This company just does not have the capital to make such investment in Liberia. If Mittal Steel had the capital, she will invest it in India. The Government of Liberia should stop making these big shows. Every Liberian knows that it is election season. Stop the lies.
Every well informed student of economics (not implying that we are all economists) but that we follow trends in the global economy, is aware that the global recession covering 2007 through 2010 has had a fundamental negative impact on most economies around the world. Even the US is still scrambling to raise unemployment levels below the 9% mark. We also know that investment in primary commodities (mainly raw materials) or natural resources, requires major initial investment (plant and equipment). It should be expected that an investor in the primary industry would consider the long term political risk before making significant commitments. Thus, it is quite commendable that in spite of the devastated state of our infrastructure and limited availability of skilled human capital, the Liberian government has yet been able to woo foreign investors to even consider looking at Liberia as a country to invest. It is indeed a testament of what these investors see as a certain soundness in the economic and trade policies of the government that they project sustainable economic growth in the years to come. To buttress and confirm this prospect, the IMF and World Bank as well as the Africa Report for 2011, have all projected that the Liberian economy will be one of the fastest growing economies in the world by the start of 2012. Specifically, Liberia is forecasted to be amongst the top 10 growing economies between 2011/2012. This growth rate is indicative of the fact that with all things being equal, the global recession will continue to recede. It also accounts for the fact that after a successful 2011 general elections, we would witness most of those investors which have made contractual commitments to Liberia, see the stable political climate as having long term conduciveness to make good on their investments.
For those who do not aware about ArcelorMittal, I've provided some information below.
ArcelorMittal is the world's leading steel company, with operations in more than 60 countries.
ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks.
With an industrial presence in over 20 countries spanning four continents, the Company covers all of the key steel markets, from emerging to mature. Through its core values of Sustainability, Quality and Leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and well-being of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources. In 2010, ArcelorMittal had revenues of $78.0 billion and crude steel production of 90.6 million tonnes, representing approximately 8 per cent of world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
Arcelor Mittal is bullish about investment in India
Source: The Financial Express Posted online: 2008-04-21 23:36:30+05:30
London, Apr 20ArcellorMittal, the worlds largest steel maker, is very bullish about India and is committed to invest nearly $25 billion in the country, according to a company official.
India is one of the star performers and we are very bullish about it. We are committed to invest nearly $25 billion, Malay Mukherjee, member of the Group Management Board of the company said.
Besides investing $10 billion each in Orissa and Jharkhand on 12 million tonnes Green Field Steel Project each, the company proposes to have more customer-oriented projects such as Service Centres in the country. We are also working in joint venture in Chennai in stainless steel, mainly for the automotive sector, Mukherjee said. Mukherjee, who will retire on May 13 as the executive member of the Board responsible for Asia, Africa, the CIS, mining, stainless and pipes and tubes but will continue as non-executive member of the Board, said it has been an exciting journey in ArcelorMittal.