Capitol Hill — The imminent takeover of the Putu Iron Ore Mining Concession by the Iron Ore Group (IOG) faces stiff resistance as Representative Jacob C. Debee, II of Grand Gedeh District #3, has called on the Government of Liberia (GoL) to enforce strict conditions before approving the proposed deal.
Speaking at a news conference held at his Capitol Building office, the Gbarzon Statutory District Representative warned that the new operator must fully honor the original agreement's commitments to local communities and national development.
Rep. Debee recounted that the original operator, Putu Iron Ore Mining, Inc. - owned by Russian steel giant Severstal, signed a 25-year Mineral Development Agreement (MDA) with the government on September 2, 2010. The company, holding a Class-A Mining License valid until 2035, halted operations in 2014 during the Ebola crisis and has since abandoned the production area.
The Proposed Takeover
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In recent years, IOG has been negotiating to acquire Putu's assets from Severstal. The Hong Kong-based Bank of Asia Group, through its subsidiary Bank of Asia International Asset Management Limited, reportedly holds IOG's ownership in trust. The company's interest in the Putu Project is expected to be transferred to African Iron Ore Corporation (AIOC), a Mauritius-registered entity.
An initial Memorandum of Understanding was signed in 2021 between IOG, Putu, and the GoL, but progress stalled due to the COVID-19 pandemic, international sanctions on Russian entities, and Liberia's 2023 elections. In August 2024, IOG and Severstal concluded a Sale of Shares Agreement, with government approval now pending through a "Change of Control" process.
IOG projects a US$3 billion investment in rail, port, power, water, and processing facilities, aiming to produce 25 million tons of high-grade iron ore annually for the global market, especially China. The life of the mine is estimated at 30-50 years, potentially generating US$2-3 billion in annual export revenues.
Concerns Over Commitments
While acknowledging the project's national economic potential, Representative Debee expressed concern that IOG's focus appears heavily skewed toward production and export infrastructure, with vague commitments to community development and employment.
Under the original agreement, Putu was obligated to do the following: Pay annual social development contributions, including nearly US$250,000 for education and research, build a two-lane paved road between Greenville and Zwedru, construct a railroad and commercial port with a one-million-metric-ton annual capacity, establish a hospital with preventive and curative services and employ at least 30% Liberians in management roles within five years, including 30% of the top ten senior positions.
However, the Grand Gedeh District #3 lawmaker insisted that these commitments must remain non-negotiable conditions in any transfer of the concession.
Warning Against a 35-Year Monopoly
The lawmaker also opposed IOG's request to take over the remaining 10 years of Putu's MDA while also securing a new 25-year agreement, thus effectively locking in 35 years of control.
He recommended that any decision on a new long-term deal be based on IOG's performance during the existing 10-year period.
Recommendations to GoL
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Rep. Debee outlined key demands for the government before granting approval.
In his recommendations, he craved that IOG show solid proof of financial capacity to execute the project enforce all original social, medical, educational, and employment obligations from the Putu MDA and make these obligations conditions of default, allowing the government to terminate the agreement if unmet.
He also recommended that government delays any new 25-year deal until the existing 10 years have been implemented successfully and ensure any revised agreement undergoes legislative ratification.
"The Putu Project is a vital national investment," Debee concluded. But it must benefit not just foreign shareholders, it must transform lives in Grand Gedeh, Sinoe, and River Gee, and contribute meaningfully to Liberia's development," added Rep. Debee.
