Monrovia — President Joseph Nyuma Boakai has expressed his administration's commitment to signing the amended ArcelorMittal Mineral Development Agreement that has stalled in the corridors of the Executive Mansion and the Legislature for over three years.
President Boakai made the commitment following a high-level meeting with Mr. Lakshmi Mittal, the Executive Chairman of ArcelorMittal at the Executive Mansion on Monday.
Said the President: "We are very proud of the investment they [ArcelorMittal] have made in this country. Our determination is to encourage further investment. We know that there are some hurdles along the way, but we are committed to making sure that we resolve them to encourage the investment and that we can find a way forward in the interest of the country and the investors. We just assure him that there is nothing that is going to stop our relationship and we want to encourage their increased investment in Liberia."
The meeting marks the first encounter between Mr. Mittal, Executive Chairman of the world's second largest steelmaker and President Boakai since the President's inauguration. A joint statement issued by the Executive Mansion and the ArcelorMittal said the discussion focused on ArcelorMittal's operations in Liberia and President Boakai's Agriculture, Roads, Rule of Law, Education, Sanitation, and Tourism (ARREST) Agenda for the sustainable development of Liberia.
It added that the meeting underscored the strong ties and collaborative spirit that have characterized the relationship between Liberia and ArcelorMittal since 2005 when the company first entered the country after the civil war.
It quotes President Boakai as saying that the Government of Liberia recognizes ArcelorMittal's commitment to Liberia and its people, and look forward to continuing the partnership with ArcelorMittal as a trusted ally, diversifying support for Liberia's transformation, and ensuring Liberians benefit from these investments.
ArcelorMittal's initial operation played an important role in Liberia's mining industry, and its current US$1.4 billion investment aims to expand iron ore production to 15 million tons annually. Today, ArcelorMittal remains the largest foreign investor in Liberia.
With this new outlay, the company notes that its total investments in the country will exceed US$3.0 billion, which also includes a substantial investment in the Yekepa-Buchanan rail infrastructure. The first phase of the expansion is due for completion in late 2024. ArcelorMittal is further studying a phased development of up to 30 million tons per annum.
Consistent with President Boakai's vision of empowering Liberian youth with essential technical and operational skills, at Monday's meeting, ArcelorMittal reaffirmed its dedication to additional investment in its Vocational and Technical Center (VTC), as well as support to other Technical Vocational Education and Training (TVET) institutes in Liberia. By 2025, the company said ArcelorMittal's VTC will have 200 skilled youths in their program in addition to the 100 who have already graduated, adding that the collaboration with other technical vocational training centers around the country will help to enrich Liberia's talent pool and drive socioeconomic advancement in the country. The company pledge to continue to provide scholarships for Liberian students pursuing higher education abroad, thereby nurturing the next generation of leaders.
As an integral component of Liberia's socio-economic development, the Government expressed commitment to combat the trafficking and consumption of illicit drugs. ArcelorMittal said it is aligned with this mission and pledged support by investing in community programs and initiatives aimed at raising awareness among local communities about the risks associated with harmful substance use, safeguarding livelihoods and the wellbeing of Liberians.
ArcelorMittal remains the biggest investor and contributor of direct and indirect taxes in Liberia. The company pledged its commitment to continue to create economic opportunities for Liberians by creating jobs, supporting local businesses, developing hospitals and schools, and participating in the refurbishment of critical road infrastructure such as the Ganta-Yekepa Highway, which is a vital economic link in the regional road network connecting neighboring countries Guinea and Cote d'Ivoire.
Satisfied with the assurance
In 2021, ArcelorMittal and the immediate past government signed an expansion deal to the Mineral Development Agreement, giving the greenlight for the expansion of the company's mining and logistics operations in Liberia. However, ratification of the MDA became politicized and ended up back with the Executive which was later found to have influenced the return.
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Speaking alongside President Boakai, Executive Chairman Lakshmi Mittal expressed satisfaction with the President's assurances and reiterated the company's dedication to Liberia's growth. He emphasized the need for executive, legislative, and community support for continued investment and growth, indicating potential production beyond 15 million tons.
"We have been here since 2005. And we remain the largest foreign investor in this country since 2005. We have committed and we are delivering. I have been proud of my company and my people," Chairman Mittal said.
"We need the support of the government, we need the support of the community, we need the support of the Legislature to allow us to continue to invest and grow in Liberia. Our vision is to grow together with Liberia. Our commitment is not limited to 15 million tons, it could be beyond 15. I am very happy with his assurances on the pending issues that will be resolved as soon as possible."
