Liberia: House Passes Arcelormittal Third MDA Amendment, Sends to Senate

- The House of Representatives on Tuesday night overwhelmingly passed the Third Amendment to the Mineral Development Agreement (MDA) between the Government of Liberia and ArcelorMittal Liberia, sending the measure to the Senate for concurrence after months of negotiations and hours of legislative review.

The amendment was approved 51-0, with two abstentions, following adoption of a Joint Committee report recommending passage without reservation. Representatives James Kolleh and Jacob Debee abstained during the roll-call vote. The bill has now been forwarded to the Liberian Senate.

The vote followed a public hearing held Monday, Jan. 19, 2026, by the Joint Committee on Investment and Concessions; Lands, Mines, Energy, Natural Resources and Environment; and Judiciary. The hearing, conducted in the main chamber of the Capitol Building, ran for more than four hours and featured presentations from the Inter-Ministerial Concessions Committee (IMCC), including senior officials from the Ministries of Mines and Energy, Justice, Finance and Development Planning, Labor, and the National Investment Commission.

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In its report to Plenary, the Joint Committee said the Third Amendment offers a "marked improvement" over the current MDA, citing stronger provisions on government revenue, infrastructure ownership, employment, Liberian participation, and regulatory clarity. Lawmakers noted negotiations began in 2020, followed the Legislature's rejection of an earlier version in 2021, and continued through years of renegotiation to correct deficiencies previously flagged by Parliament.

Rail, Port Ownership and Multi-User Access

A key change, the committee said, is the explicit affirmation of Government of Liberia ownership of rail and port infrastructure, coupled with the introduction of Rail System Operating Principles intended to transition the Yekepa-to-Buchanan rail corridor into a multi-user system. The report said the reform strengthens national control while allowing third-party access under regulated terms.

Revenue Package and Recurring Fees

On fiscal benefits, lawmakers outlined immediate and recurring revenues, including a US$200 million signature bonus payable within 30 days of effectiveness; a US$5 million annual Community Development Fund for Nimba, Bong, and Grand Bassa counties; a US$200,000 annual rail oversight fee; and a US$500,000 annual mining license fee beginning in 2031.

Royalties, the committee said, will be paid monthly at 4.5 percent of the Free On Board (FOB) Buchanan price, improving government cash flow and predictability.

Liberianization Targets and SME Support

The amendment also mandates accelerated "Liberianization" of management, requiring 50 percent Liberian management within one year, 75 percent within five years, and 90 percent within 10 years, with at least one Liberian among the top four senior executives within the first year.

It further prioritizes qualified Liberians for employment and establishes structured support for Liberian-owned small and medium enterprises, the committee said.

Education, Training and Skills Development

The agreement institutionalizes a US$500,000 annual training budget, including scholarships in geology and mining engineering, a new vocational training center campus in Grand Bassa County, and annual contributions to the University of Liberia's Mining and Geology Institute and community colleges.

Roads, Bridges and Rail Upgrade

Infrastructure commitments include repairs to the KM 2.5 and St. John River bridges, paving of the Buchanan Concession Road and the Sanniquellie-Yekepa corridor, and an immediate rail upgrade to 30 million tons per annum, with at least 8 mtpa guaranteed for third-party users.

The government is entitled to 30 percent of net profit from rail capacity leasing and 100 percent of access fees from third-party users, according to the report.

Environment and Water Safeguards

Environmental provisions require exclusive use of rainwater for mining operations and an annual US$100,000 payment to the Liberia Water and Sewer Corporation for water use.

In closing, the Joint Committee described the amendment as "strong, balanced, and forward-looking," arguing it secures improved value for Liberia's iron ore resources and signals readiness for responsible and transparent investment.

Plenary adopted the report and passed the bill without reservation. The Senate is now expected to take up the measure for concurrence.

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