Liberia-High Power Exploration (HPX) made headlines in September 2019 with its acquisition of the Nimba iron ore deposit on the Guinean side of the border, a move that was initially celebrated as a significant boost for West Africa's mining sector. However, four years later, HPX has failed to deliver on its promises, raising serious concerns about the company's true intentions and the negative impact of its activities on the economies of Guinea and Liberia.
Empty Promises and Misguided Ambitions
HPX entered the West African mining scene with grand ambitions, promising to revolutionize the industry by exporting between 15 to 30 million tons of iron ore annually. Yet, despite these lofty goals, the company has remained stagnant, unable to progress beyond the planning stages. The reasons for this are manifold, but the most glaring issue is HPX's lack of a coherent investment and operational strategy, particularly concerning the use of Liberian infrastructure for iron ore transport.
HPX's intentions appear dubious, as the company has yet to commit to any significant investment in Liberia. Instead, it seems more interested in using Liberia as a mere conduit for its Guinean iron ore, without contributing to the country's development. This strategy not only undermines Liberia's economic potential but also raises questions about HPX's long-term objectives in the region.
Undermining a Proven Investor
Rather than collaborating with existing stakeholders to enhance Liberia's infrastructure, HPX has chosen a path of disruption. The company has been relentlessly pushing to remove ArcelorMittal Liberia (AML) as the operator of the Yekepa-Buchanan railway, despite AML's proven track record and significant investments in the country. This campaign is not only baseless but also dangerous, as it threatens to destabilize a critical component of Liberia's mining sector.
ArcelorMittal has been a cornerstone of Liberia's economic recovery since 2005, investing over US$1.7 billion in direct investment along with $500 million to rehabilitate the Yekepa-Buchanan railway--a vital infrastructure that was decimated during Liberia's civil war. This investment has not only restored the railway but has also laid the groundwork for future economic growth in Liberia. Furthermore, ArcelorMittal has demonstrated its commitment to Liberia's development by agreeing to a multi-user arrangement, allowing other companies, including HPX, to use the railway while directing all revenue from its use to the Liberian government.
HPX's efforts to undermine AML's operations are deeply concerning, especially given HPX's lack of investment in Liberia. The attempt to displace a proven investor like AML, who has consistently shown a commitment to the country's growth, is not only unjustified but also reckless. HPX's actions risk derailing the progress that has been made in Liberia's mining sector, depriving the country of much-needed revenue and job opportunities.
The Real Cost of HPX's Propaganda
HPX's propaganda campaign against AML has far-reaching implications. By spreading misinformation and creating unnecessary tension, HPX is jeopardizing the stability of Liberia's mining sector. The company's actions have already caused significant economic harm, as the uncertainty created by its campaign has discouraged further investment in the country.
Moreover, HPX's actions have a destabilizing effect on the region as a whole. The company's failure to make progress on its Guinean mining project has not only stunted Guinea's economic growth but has also put a strain on Liberia's economic progress. By undermining AML, HPX is endangering the collaborative spirit that is essential for the successful development of cross-border projects between Guinea and Liberia.
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The Need for Government Intervention
Given the risks posed by HPX's disruptive behavior, it is imperative that the Liberian government takes decisive action. Allowing a company with no tangible investment in the country to dictate the future of its infrastructure would be a grave mistake. The government must reaffirm its commitment to ArcelorMittal and recognize the company's crucial role in Liberia's economic development.
ArcelorMittal's investment in Liberia has already borne fruit, and the company's continued presence is essential for the country's long-term prosperity.
Furthermore, the government should hold HPX accountable for its actions and demand that the company either commit to meaningful investment in Liberia or cease its disruptive activities. HPX's failure to deliver on its promises in Guinea should serve as a cautionary tale for Liberia. The country cannot afford to be used as a pawn in HPX's game of profit without purpose.
