Sources close to ongoing discussions between the Government and High Power Exploration (HPX) have confided to the Daily Observer that HPX has formally engaged the National Port Authority for use of approximately 80 acres of NPA owned land for phase one of its iron ore trans-shipment project. A team of HPX engineers have been seen spending a significant amount of time visiting the Port of Buchanan for technical assessments.
According to reports, HPX plans to commence initial operations in Liberia exporting up to 5 million tons per annum (mtpa) of iron ore mined from its Nimba Project in Guinea, while the Liberty Corridor parallel rail is under development for shipping upwards of 30 to 50 mtpa in capacity.
It is anticipated that the Liberty Corridor, which was announced in February by HPX, Guma Africa Group and the Government of Liberia, will take five to six years to complete. However, HPX is commencing Phase one of its investment, and pursuing a concession agreement with the GOL for access to the existing Yekepa to Buchanan rail under the Government's expressed multi-user access policy called for by President Boakai.
Phase one of the HPX project is expected to generate over 400 direct jobs across multiple aspects of planned operations and as much as 3,000 indirect jobs through third party contractors and suppliers during the four years of HPX Phase one operations.
The Buchanan Port is said to be crucial to HPX development of its project and is to include stockpiling areas, warehouses, offices, rail line extension for loading and off loading of rail cars, marine services, and multiple logistics necessary for port efficient operations. HPX has publicly stated plans to build a dedicated deep water port in Didia southeast of Buchanan once the Liberty Corridor comes on line.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
When contacted, HPX Liberia Country Manager, Mr. Henrique Caine wouldn't comment on any of the specifics of their ongoing discussions with the GOL, but only confirmed that "HPX is aggressively pursuing its Access and Concession Agreement with the Government and the port of Buchanan is an essential component of those efforts. We remain fully committed."
The Observer is also aware that the regional iron ore sector, which includes multiple viable projects in Liberia and Guinea, is likely to seriously take off when the Trans Guinea Railroad Project is completed, which is 680 kilometers of rail from Simandou towards Conakry. Many industry observers have noted that for HPX, it makes more business sense to export 230 kilometers through Liberia and so the discussions with the Government about fair multiuser rail access is not one that should be taken lightly, especially given the potential and obvious economic benefits to Liberia that would come from such an investment.
