Liberia: Mining - Grand Gedeh Rep. Calls for Probe in Putu Mining Saga

31 July 2024
The New Republic Liberia (Monrovia)

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Grand Gedeh County District #1 Representative Jeremiah Sokan has called for urgent action from the leadership of the House of Representatives to address the lingering economic challenges faced by the people of Grand Gedeh.

In a letter to Speaker Fonati Koffa, Sokan requested the appearance of Jeff B. Blibo, Chairman of the National Investment Commission, and Wilmot Paye, Minister of Mines and Energy, to provide a comprehensive status update on the Putu Iron Ore Mining Company deal.

The Putu Iron Ore Mining Company, a Russian steel giant, signed a Mineral Development Agreement (MDA) with Liberia on September 2, 2010. The company's operations, which ceased in 2016, significantly impacted the socio-economic landscape of Grand Gedeh County through employment, human capacity development, and infrastructure enhancement.

The lawmaker observed that the cessation of operations has led to a severe economic downturn in the region, with many citizens left jobless and the overall economic situation worsening.

Sokan highlighted the critical need for immediate intervention and comprehensive strategies to address the financial challenges faced by his constituents.

He referenced a statement made by former Minister of Lands, Mines, and Energy, Patrick Sendolo, in January 2016, which indicated that Putu Iron Ore Mining Company had exited Liberia due to difficulties in managing the mining process independently.

"The former minister's declaration, 'From all practical purposes, Putu is basically out of Liberia,' underscores the finality of the company's departure, despite the technical validity of the MDA," Sokan wrote.

The Grand Gedeh Lawmaker outlined several key aspects which he believes require urgent clarification, including the current status of the MDA, the economic impact of Putu's departure on Grand Gedeh County, future plans to attract new investors, support for displaced workers, and updates on infrastructure and community development commitments.

Sokan emphasized the importance of transparency and accountability in handling the aftermath of Putu Iron Ore Mining Company's exit and called for immediate and sustainable solutions for Grand Gedeh County's economic recovery.

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