10 January 2013

Liberia: 'I Have No Regret for Elenito Concession'

Amidst regrets from citizens in the western region of Liberia about Elenito selling the Western Cluster for 33.5m, Bomi County lawmaker and Speaker of the House of Representatives, Alex J. Tyler, has disclosed that he does not regret the special consideration that was given the company to operate in the country.

Elenito's request in 2010 to the government to operate in the Western Cluster was heavily resisted by some Liberians including a Liberian Economist Mr. Sam Jackson and a number of other experts that the company had no expertise in mining and as such government should not award the region to them.

But due to government's refusal to adhere to its people, the 'real estate' company was awarded the concession to mine the iron ore deposits in Western Liberia to what many considered to the disadvantage of the Liberian people.

It may be recalled on Friday, December 21, 2012, that Elenito announced the sales of its remaining 49% ownership in its iron ore deposits to an Indian company, Sesa Goa for US$33.5m. This means that Mr. Jacob Engel's Elenilto of Elenito notoriety, naturally walked away from Liberia with over US$123.5 million without putting a shovel into the ground to mine.

In 2011, Elenilto also sold 51% of the Western Cluster Limited to Vedanta Group, Sesa Goa, an Indian owned firm registered on the British Stock Exchange for about US$90m. The deal gave Sesa Goa a 100% shareholding in the Western Cluster. The group also acquired the remaining 49% of the outstanding common shares of Western Cluster Ltd (WSL) from Elenito Minerals and Mining LLC Delaware, for a cash consideration of US$33.5m.

Speaking yesterday on a radio talk show (Truth FM 96.1), Speaker Tyler said it was important at the time to have something doing in the region.

The Bomi County lawmaker told the listening audience that the agreement in the concession is still intact and as such, he is optimistic that most of the items listed in the agreement will be undertaken by the company.

Copyright © 2013 The Inquirer. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.