Capitol Hill — The Liberian Senate has concurred with the House of Representatives to pass the Third Amendment to the Mineral Development Agreement (MDA) between the Government of Liberia and ArcelorMittal Liberia Holdings Limited, including ArcelorMittal USA Liberia Holdings, clearing the way for the instrument to be forwarded to President Joseph Nyuma Boakai for final approval.
The Senate's concurrence follows the House's earlier passage of the amendment and its subsequent transmission to the upper chamber for review. Lawmakers in both chambers described the revised agreement as a major step toward accelerating economic growth, strengthening national infrastructure, and expanding employment opportunities, particularly in mining-affected communities.
According to the Legislature, the Third AML Amendment outlines substantial benefits for Liberians, including increased job creation, higher government revenue, expanded rail and port infrastructure, and broader opportunities for Liberian-owned businesses and contractors. The amendment also reinforces commitments to skills transfer, community development, and social investment in host counties.
Senate Vote and Committee Review
Follow us on WhatsApp | LinkedIn for the latest headlines
The Senate ratified the agreement on Thursday following the presentation of a report from a Joint Committee comprising Lands and Mines, Concessions and Investment; Ways, Means, Finance and Budget; and Judiciary, Human Rights, Claims and Petitions during regular session at the Capitol Building.
A motion for ratification was filed by Bong County Senator Prince Moye. About 20 senators voted in favor, while three abstained.
In its report, the Joint Committee disclosed that it held a public hearing with the Inter-Ministerial Committee on Concessions (IMCC) to assess the importance, necessity, and expected economic impact of the amendment. IMCC members told lawmakers that the revised agreement, as submitted by the President, is in the best interest of Liberia, citing significantly improved provisions aimed at long-term growth and development.
Key Economic and Financial Provisions
The committee reported that the amended agreement extends AML's operational term to December 20, 2050, with production capacity projected to increase from 15 million wet metric tons per annum (WMT) by 2027, to 20 million WMT by 2031, and eventually to 30 million WMT thereafter.
Among the major financial gains outlined are an upfront US$200 million payment to the Government of Liberia, an increase in the annual mining license fee from US$50,000 to US$500,000, and an annual US$5 million community development contribution for affected communities.
Rail, Roads, and Infrastructure
Under a new Railroad System Operating Principle (RSOP), the government will have the right to establish a multi-user rail regime, allowing other users access to the Yekepa-to-Buchanan rail corridor on a non-discriminatory basis. This framework is expected to generate additional revenue and facilitate the eventual transition to an independent, government-regulated rail authority by 2030, in line with Liberia's long-term vision for a national rail system.
The agreement also provides for rehabilitation of the 2.5-kilometer bridge connecting Buchanan City Center to the concession loop; rehabilitation of the St. John River Bridge linking Bong and Grand Bassa counties, and paving of the concession road connecting the mining area to Tubman Street in Buchanan.
Jobs, Training, and Local Content
The Joint Committee emphasized that the amendment prioritizes Liberian employment, including placement of Liberians in senior management positions and the creation of exclusive job opportunities for qualified citizens.
Upon ratification, AML will build and operate a vocational training institute in Buchanan, Grand Bassa County, aimed at equipping Liberians with skills needed for jobs within the company and the broader mining sector.
The agreement also introduces improved tax regimes, expected to significantly boost national revenue.
"The Third Amendment will increase employment, strengthen revenue generation, improve infrastructure, and enhance the living standards of Liberians," the Joint Committee stated, recommending unanimous approval.
Senate Leadership Endorsements
Joint Committee Chairman Senator Simeon Taylor described the Third AML Amendment as "relevant and essential," noting that it ensures the maintenance of community roads in Bong, Nimba, and Grand Bassa counties, and upgrades to health facilities in Yekepa, Buchanan, and surrounding areas.
He disclosed that AML will pay over US$4.6 million for the construction of three medical facilities in Nimba and Grand Bassa counties, maintain the Sanniquellie-Yekepa Road, and complete asphalt paving of the Ganta-Sanniquellie Road.
Senator Taylor also highlighted new provisions imposing fines and penalties should AML fail to comply with the agreement, calling the amendment "far improved" compared to previous versions.
Broad Legislative Support
Several lawmakers from AML operational areas, including Senators Nyonblee Karnga Lawrence, Gbehzohngar Findley, Samuel Kogar, and Prince Moye, strongly supported ratification, noting that the US$200 million signature bonus would benefit citizens nationwide.
Senate Pro Tempore Nyonblee Karnga Lawrence said concerns raised by communities and stakeholders were addressed before ratification. She disclosed that AML committed to additional support, including US$3 million for road construction in Grand Bassa, a children's sports park in Bong County, housing projects, and feeder road maintenance.
Call for Broader Reform
Senators Dabah Varpilah and Amara Konneh urged the government to use the AML agreement as a model for reviewing and amending other Mineral Development Agreements to protect local content and ensure broader citizen benefits.
Senator Konneh acknowledged that while the AML deal is not perfect, it represents a significant improvement, particularly in local content, community development, and Liberian participation in management.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"The core of this deal is local content and Liberian enterprise," Konneh said, stressing the need for disciplined implementation to translate commitments into tangible benefits for communities.
President Welcomes Passage
President Joseph Nyuma Boakai has welcomed the passage of the Third Amendment, describing it as a major milestone following years of negotiations and constructive engagement.
In an Executive Mansion release, the President noted that ArcelorMittal Liberia remains one of the country's largest private-sector investments and leading employers, making significant contributions to job creation, skills transfer, and community development.
He said the amended agreement will unlock a major expansion of AML's operations, increasing production capacity to 15 million metric tons, with projections to scale up to 30 million metric tons, supported by an independently operated, multi-user railway.
According to President Boakai, the amendment will provide a substantial boost to the national economy through increased employment, enhanced revenue generation, and stronger development in host communities. He described the passage as a clear demonstration of Liberia's investor-friendly climate and the government's commitment to responsible and sustainable investment.
The President reaffirmed his administration's resolve to continue engaging investors, local communities, and stakeholders to ensure Liberia's natural resources are developed responsibly, inclusively, and for long-term national benefit.
