ArcelorMittal Liberia (AML) commemorated 20 years of operations in Liberia on April 4, 2025, with a series of celebratory events in Yekepa, Nimba County. Yet, while the company sought to highlight its contributions, including job creation and investments in mining infrastructure, critics were quick to contrast these claims with the underwhelming transformation of concession areas and continued underperformance on obligations enshrined in its Mineral Development Agreement (MDA).
The company's presence in Liberia began with high hopes. In 2005, under the transitional government of Chairman Gyude Bryant, AML signed its first Mineral Development Agreement (MDA). Two years later, it was ratified by the Ellen Johnson Sirleaf administration--amid reports that lawmakers were gifted a fleet of pickups to ease the passage of the deal.
Since then, AML has operated Liberia's largest iron ore concession, controlling not only the mining areas but also exclusive access to the country's only operational railway, running 243 kilometers from Yekepa to Buchanan.
To its credit, AML says it has invested over US$3 billion into its Liberia operations. These include rehabilitation of mine sites, some maintenance of the railway and port facilities, the ongoing construction of a concentrator plant, and the rebuilding of segments of the Ganta-Sanniquellie road. The company also points to its compliance with select corporate social responsibility obligations, such as community development fund contributions and vocational training for young Liberians.
At last week's ceremony, AML reported hiring 200 new employees, many of whom are local artisans trained under its programs.
"We expected more..."
Yet, for many in Yekepa and beyond, these are not enough to offset two decades of broken promises, deteriorated infrastructure, and unfulfilled potential. During the height of LAMCO operations in the 1960s to 1980s, Yekepa was a fully functioning township, with a power grid, pipe-borne water, paved roads, well-kept estates, a standard hospital, and even a golf course. Today, those assets are either gone or in ruin. Community members told the Daily Observer that many of the once-thriving estates -- Area F, O, P, and S among them -- are either abandoned or being informally occupied by squatters.
The Yekepa hospital, once a referral facility for northern Liberia, is now operating at what locals describe as a "clinical level," unable to handle even basic surgical procedures. Several residents shared frustrations that container homes have replaced traditional housing, and that senior staff quarters, once symbols of status, are now either vandalized or occupied by paramilitary police.
"We want AML to stop bringing in imported houses and concentrate on renovating those estates," said Mary Siaway, a longtime resident of Yekepa.
Other residents of Yekepa voiced frustrations over what they describe as the dismal state of the once-thriving mining town. "There's no clean water, no reliable electricity, and most of the old LAMCO estates are ruins," said James Mulbah, a local elder. "For 20 years of operation, we expected more." Similar sentiments were echoed by other residents, who questioned the company's prioritization of temporary, prefabricated housing over renovation of the existing infrastructure inherited from the pre-war era.
These criticisms are not new. In a letter dated May 23, 2022, the Ministry of Mines and Energy (MME) reminded AML of its unmet obligations under the MDA. "We take note that AML has failed to fulfill certain key obligations of the Agreement including but not limited to local content, community development initiatives, and infrastructure rehabilitation," wrote the Ministry.
The letter concluded with a call to "reassess your community development strategy to align with the legitimate expectations of the communities and the Government."
Despite these warnings, recent observations suggest little has changed. At the 20th anniversary ceremony, AML executives touted the construction of a new concentrator plant and ongoing training programs for youth. But these gestures did little to offset criticism that the company has prioritized extraction over long-term development.
Then, the railroad...
The milestone celebration came as AML faces intense scrutiny over its bid for a third amendment to its MDA, which would extend the company's exclusive control over the 243-kilometer Yekepa-Buchanan railway. But the Government of Liberia, through Executive Order 136, has taken a firm policy turn toward multiuser rail access--an open infrastructure model that would allow multiple companies to operate on the rail under an independent operator.
Perhaps the most damning critique of AML's capacity to continue as the sole rail operator comes not from its critics, but from AML itself. In its 2023 annual report, the company acknowledged its continued struggle with the rail component of its operations.
"The Liberia segment incurred a loss of US$52.3 million in 2023, primarily due to the high cost of rail logistics and frequent derailments," the report states. It further notes that "operational efficiency along the Yekepa-Buchanan rail corridor remains below projected benchmarks," admitting that "significant investment is needed to bring the rail to internationally competitive standards."
These admissions raise serious questions about AML's ability to achieve its newly announced goal of ramping up production from 3 million metric tons per annum (mtpa) to 15 million mtpa once the concentrator is completed. The current rail infrastructure, by AML's own data, is not only underperforming but structurally inadequate to support such a dramatic scale-up. Coupled with a history of derailments -- some resulting in fatalities -- these issues highlight the risk of continued single-company management of such a critical national asset.
It is within this context that the Government of Liberia's push for a multiuser rail regime gains both urgency and legitimacy. In his response to AML's objections over the Ivanhoe Framework Agreement, then-Minister of Justice Cllr. Frank Musah Dean wrote on May 20, 2022: "The Ivanhoe Framework Agreement is fully consistent with the MDA. It expressly provides that the Government must comply with its obligations under the MDA when giving effect to the Ivanhoe Framework Agreement." Dean emphasized that the MDA "contemplates and supports such multiuser access and use under Sections 9.3(e) and 9.3(f)."
The same legal opinion clarifies that Liberia's decision to open the rail to other users is not a breach of AML's rights but rather a fulfillment of Liberia's sovereign responsibility to optimize use of public infrastructure. "The Government's decision... should not be viewed as an effort to undermine the position of AML," Dean wrote. "Instead, it reflects the Government's expectation that AML... will work constructively... to bring to fruition the Government's vision of a multiuser rail and port transportation system."
Still, AML's posture remains combative. In recent correspondence, the company warned of potential legal action if the Government proceeds with granting rail access to Ivanhoe Atlantic before 2030, citing what it believes to be a breach of its current MDA. Yet these claims ring hollow in light of AML's own struggles to manage and maintain the rail. As Liberia transitions toward a system where rail operations are overseen by an independent operator under the watch of the National Rail Authority, AML's history of derailments, low shipping volumes, and underinvestment only strengthens the argument for reform.
To be fair, AML's presence has not been without value. The company has been a consistent corporate taxpayer and one of the country's largest private employers. Its training programs, especially in welding, mechanics, and industrial electricity, have provided skills to hundreds of young Liberians. Its port operations in Buchanan remain critical to the country's trade logistics.
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However, revenue projections under the multiuser rail regime could catapult Liberia's economy into the billions of dollars. This unlocks massive potential revenue not just from the mining sector, but also from agribusiness, logistics and passenger transport -- all via rail.
According to fiscal documents reviewed by the Daily Observer, Ivanhoe Atlantic alone could generate over US$1.4 billion in rail access fees over the next 25 years, not including taxes and additional investment spurred by expanded corridor development. With more than 11 billion tons of iron ore estimated along the corridor, Liberia cannot afford to trap this potential behind the iron gates of exclusivity.
Ironically, AML's complaints over multiuser access and independent oversight appear to prioritize corporate interest over national development. By contrast, the Government's proposed rail model invites a new era of transparency, competition, and economic opportunity--particularly for mining investors who have for years been locked out due to AML's rail monopoly.
At the April 4 commemoration in Yekepa, AML CEO Michiel van der Merwe reiterated the company's ambition to expand ore shipments to 15 million mtpa. But given AML's track record, both in terms of infrastructure development and operational transparency, such goals must be weighed against the broader national interest.
Ultimately, Liberia's 20-year experiment with AML has offered important lessons -- first among them, the importance of making better deals, especially from extractive industries. Also, foreign direct investment must be accompanied by enforceable benchmarks; infrastructure vital to national growth should not be left to one company; and public-private partnerships must serve public good first.
As Liberia looks to the next chapter, embracing a multiuser rail regime is not just sound policy--it is a long overdue correction.
