Monrovia — ArcelorMittal Liberia (AML) has taken its legal battle with the Liberian Petroleum Refining Company (LPRC) to the Supreme Court after losing a high-profile case at the Sixth Judicial Circuit Court.
On August 21, the lower court ruled against AML in a dispute centered on safety rules and compliance with Liberia's petroleum laws, particularly regarding the company's construction of two petroleum storage tanks at its facilities in Buchanan, Grand Bassa County and Yekepa, Nimba County. AML insists the tanks are critical for its operational efficiency and energy independence.
In its petition, AML argued that under Article 24, Section B of its 2007 Amended and Ratified Mineral Development Agreement (MDA)--a law enacted by the Liberian Legislature--it has explicit rights to import fuel for its operations without interference from any regulatory authority not expressly mentioned in the agreement.
The LPRC, however, citing its 1989 Exclusive Rights Act, asserted regulatory control over the construction of petroleum storage facilities. The company imposed fines totaling US$150,000 on AML and demanded an additional US$100,000 permit fee.
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While AML transferred the US$100,000, it later clarified that the payment was made as a "goodwill gesture" to support LPRC's investigation and did not constitute recognition of LPRC's regulatory authority.
The court nevertheless sided with LPRC, ruling that the 1989 Act grants the state-run company authority to regulate all aspects of petroleum handling, including storage infrastructure.
The court further ruled that AML's rights under the MDA do not amount to a regulatory exemption.
However, AML is not backing down.
Through lead counsel Atty. Ernest Y. Dunbar, the company, immediately took an exception to the ruling and announced an appeal to the Supreme Court, asserting that the lower court misinterpreted the intent and legal weight of its ratified concession agreement.
"This case is not just about tanks and permits. It's about the sanctity of contracts and legal certainty for investors operating under agreements ratified by Liberia's Legislature," said an AML legal official.
"We're appealing because the long-term investment climate in Liberia depends on clarity and respect for the rule of law."
A Precedent with National Implications
Observers believe the outcome of this appeal could redefine the balance of power between concessionaires and state-owned enterprises in Liberia.
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If AML's appeal is upheld, it may reinforce the primacy of concession agreements over general statutes in cases where the two appear to conflict.
AML argues that LPRC's position threatens not only the integrity of its MDA but also opens the door to "arbitrary interference" in private-sector operations by state entities not expressly granted oversight in concession agreements.
"We cannot have every government agency claiming blanket jurisdiction over concession operations," said one legal analyst, speaking on condition of anonymity.
"That's a formula for regulatory chaos."
Legal Grey Areas and Investor Concerns
AML has also warned that the lower court's interpretation could deter future foreign direct investment if companies feel they cannot rely on agreements signed at the highest levels of government.
In response, LPRC, backed by Sherman & Sherman Law Firm, argued that AML's attempt to bypass its authority represents a direct challenge to its statutory mandate to ensure the safe and proper handling of petroleum products in Liberia.
But AML maintains that such responsibilities lie within the scope of other relevant institutions, such as the Environmental Protection Agency (EPA), not LPRC, especially where construction and safety standards are concerned.
As the case heads to the Supreme Court in its October Term 2025, both legal and business communities will be closely watching what may become a defining judgment in Liberia's regulatory and investment framework.
