Monrovia — President Joseph Nyuma Boakai has formally submitted to the Liberian Legislature Amendment No. 3 to the Mineral Development Agreement (MDA) between the Government of Liberia (GoL) and ArcelorMittal, urging lawmakers to ratify the agreement, which he says carries far-reaching strategic benefits for the country.
Emmanuel Weedee-Conway and Obediah Johnson
The amendment, signed between the Executive Branch and ArcelorMittal, must be ratified by the Legislature to become law, in accordance with the Constitution of Liberia. The President submitted the agreement to the House of Representatives for review and subsequent ratification during the opening of the first quarter of the Third Session of the 55th National Legislature.
In a communication addressed to Speaker Richard Nagbe Koon and read on the House floor, President Boakai emphasized that the Third Amendment strengthens Liberia's economic prospects while safeguarding national interests.
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Background of the Agreement
The Government of Liberia and ArcelorMittal Holdings AG entered into the original MDA on August 17, 2005, which was duly ratified by the Legislature, signed by former President Ellen Johnson Sirleaf, and published into handbills.
The agreement was later amended twice--on December 28, 2006, and January 23, 2013.
Following extensive negotiations and consultations, the Government of Liberia, ArcelorMittal Liberia Holdings Limited (formerly Mittal Steel Liberia Holding Limited), ArcelorMittal USA Liberia Holdings LLC, and ArcelorMittal Liberia Limited agreed to further amend the MDA. The Third Amendment was signed on December 20, 2025.
Under the new amendment, the parties agreed to restate the MDA in its entirety, consolidating all previous amendments into a single, fully amended document.
Strategic Benefits Highlighted
President Boakai told lawmakers that the Third Amendment introduces major reforms and development gains, including the establishment of the Railroad System Operating Principles (RSOP). Under this framework, the Government of Liberia will have the right to institute a multi-user rail regime, ensuring non-discriminatory access to the Yekepa-Buchanan rail corridor.
The agreement also provides for the transition to an independent, government-regulated rail authority by 2030, consistent with Liberia's long-term vision for a national multi-user rail system.
The duration of the MDA is extended to December 20, 2050, with an option for renewal.
Increased Production and Revenue
One of the major provisions of the amendment is the expansion of ArcelorMittal Liberia's production capacity, increasing from 15 million wet metric tons per annum (MWMTPA) by 2027, to 20 MWMTPA by 2031, and up to 30 MWMTPA thereafter.
The agreement includes an upfront payment of US$200 million to the Government of Liberia and raises the annual mining license fee from US$50,000 to US$500,000, beginning in 2031.
Royalties will now be paid monthly at 4.5 percent of the FOB Buchanan price, replacing the previous quarterly payment system.
Community Development and Infrastructure
Under the Third Amendment, ArcelorMittal Liberia will make an annual US$5 million contribution to a Community Development Fund (CDF) for socioeconomic projects in Nimba, Bong, and Grand Bassa counties, an increase from the previous US$3 million. The amount will be adjusted annually for inflation.
Upon ratification, the company will submit a Social Infrastructure Plan, covering projects such as:
- Rehabilitation of the KM 2.5 Bridge connecting Buchanan City Center to the concession area;
- Paving of the concession road linking the bridge to Tubman Street in Buchanan;
- Rehabilitation of the St. John River Bridge connecting Bong and Grand Bassa counties;
- Completion of the Sanniquellie-Yekepa road pavement.
ArcelorMittal Liberia will also establish a Vocational Training Center (VTC) in Buchanan to complement the existing Yekepa VTC, while continuing housing rehabilitation, education, and employment programs in affected communities.
Failure to implement social infrastructure commitments will result in penalty payments to the CDF ranging from US$250,000 to US$500,000 annually, the President noted.
Jobs, Liberianization, and Education
The amendment strengthens Liberian participation in management, requiring:
- 50% Liberian management within one year,
- 75% within five years, and
- 90% within ten years.
Within one year, at least one of the top four senior management positions--CEO, CAO, CFO, or COO--must be held by a Liberian.
The agreement mandates absolute hiring preference for qualified Liberians and prioritizes Liberian-owned small and medium enterprises (SMEs) for goods and services.
In education, the company will provide a US$500,000 annual training budget, fund scholarships in geology and mining engineering, support the University of Liberia's Mining and Geology Institute, and contribute to community colleges in the three affected counties.
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Legislative Review Ahead
The proposed Third Amendment has been forwarded to the appropriate legislative committees for scrutiny. Lawmakers are expected to conduct hearings and consultations before deciding on ratification.
If approved, the Boakai administration says the agreement will deliver sustained revenue, infrastructure modernization, job creation, and broader national economic growth while transforming Liberia's rail system into a shared national asset.
"Madam Pro-Tempore, this Third Amendment to the ArcelorMittal MDA represents a significant advancement in Liberia's economic development, infrastructure modernization, and community empowerment and is in alignment with the ARREST AGENDA for Inclusive Development. I therefore urge the Legislature to ratify this Agreement," he stated.
Meanwhile, the Plenary of the Liberian Senate has mandated its joint committee on lands, mines, and energy, investment and concessions, judiciary, ways, means, and finance to review the agreement and report back within a month.
A motion for the action to be taken was filed by River Gee County Senator Francis Dopoh.
