Monrovia — Africa Metallic Resources (AMR) has secured clearance from the U.S. Office of Foreign Assets Control (OFAC) to proceed with the acquisition of the Putu Iron Ore concession from Russian mining giant Severstal, a major breakthrough that appears to have dramatically reshaped the trajectory of one of Liberia's most closely watched mining transactions.
Multiple sources familiar with the negotiations confirmed to the Daily Observer that the OFAC clearance has now removed one of the largest regulatory obstacles surrounding the transfer of the Putu asset, which has been tied to complex sanctions-related compliance requirements because of Severstal's Russian ownership structure.
The development is significant not only because it clears a major international compliance hurdle, but because it directly undercuts concerns previously raised about AMR's readiness to conclude the transaction within a competitive timeframe.
Earlier correspondence from Severstal and sections of an internal Ministry of Mines and Energy review had suggested that AMR remained behind Planet One in terms of transaction timing and regulatory progression.
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However, sources close to the negotiations now say the successful completion of the OFAC process has substantially changed the transaction landscape, effectively restoring AMR's position at the center of the acquisition process.
"The sanctions issue was the biggest risk factor hanging over the transaction," one source familiar with the talks said. "Once that was resolved, the equation changed."
The OFAC process had become a central point of contention in recent months because any transfer involving Severstal required U.S. sanctions-related review and approval before completion could proceed legally through international financial systems.
Industry observers say securing OFAC authorization is often more difficult than demonstrating technical or financial capacity because it involves geopolitical compliance, cross-border financial scrutiny, and U.S. national security considerations.
The Daily Observer has also confirmed that AMR's financial and institutional backing has expanded significantly beyond earlier disclosures.
In addition to financing support from the Africa Finance Corporation (AFC), a strategic partner of the United States International Development Finance Corporation (DFC), AMR has secured technical partnership arrangements involving international technical partners. The DFC partners with private-sector investors globally to finance strategic infrastructure, energy, industrial, and critical minerals projects aligned with U.S. economic and geopolitical priorities.
The DFC, which operates as the international investment arm of the U.S. Government, provides debt financing, equity support, political risk insurance, and project development financing for major international investments.
The institution has increasingly focused on strategic mineral supply chains and infrastructure projects in Africa as part of broader efforts to strengthen Western-aligned access to critical resources and industrial corridors.
The emergence of DFC involvement adds an important geopolitical dimension to the Putu project, particularly given Liberia's growing importance within global critical minerals and infrastructure discussions.
The Putu concession, located in southeastern Liberia, is considered one of the country's largest undeveloped iron ore deposits. But unlike Liberia's traditional mining corridors linked to existing rail and port systems, Putu requires massive investments in rail, logistics, power, and export infrastructure before commercial production can begin.
That reality has historically complicated efforts to develop the asset.
AMR's consortium structure was specifically designed around that challenge, combining African financing through AFC, global engineering and infrastructure execution through technical partners, and Liberian ownership through the Conex Group.
Earlier government assessments had strongly favored AMR on overall strategic alignment, local participation, financing structure, and infrastructure integration. Sources familiar with the process previously told the Daily Observer that AMR reportedly scored approximately 88.6 percent during the National Investment Commission-led evaluation process, compared to 66.2 percent for India's JSW (Jindal Southwest) and 55.6 percent for Planet One.
Still, momentum around the transaction appeared to shift temporarily after documents emerged suggesting that Planet One had progressed further commercially with Severstal and could potentially conclude transaction documentation faster.
That shift culminated in a controversial May 7 communication from the Ministry of Mines and Energy which attempted to withdraw the Government of Liberia's earlier designation of AMR as preferred developer.
But sources close to ongoing negotiations now say the successful OFAC clearance materially changes the basis upon which that recommendation was made.
According to those sources, the Ministry's earlier concerns were heavily tied to transaction timing, proof of funds, sanctions-related uncertainty, and the risk of prolonged delays.
"With OFAC now resolved and financing support strengthened, the major assumptions behind the withdrawal letter have changed," one source said.
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The Daily Observer has learned that Severstal and AMR representatives are now engaged in what multiple sources describe as "closing-stage discussions" aimed at finalizing the transfer structure and remaining commercial terms.
The latest developments may ultimately reinforce the Government's original preference for AMR evidenced by an existing and legally binding Memorandum of Agreement, despite the turbulence surrounding the process in recent months.
For Liberia, the implications extend beyond Putu itself.
The transaction has increasingly become a test case for how Liberia handles legally binding agreements, balances local ownership, international financing, geopolitical compliance, infrastructure development, and long-term strategic control over major mineral assets.
AMR has previously projected that the Putu project could generate between US$1.5 billion and US$2 billion in export revenues, create more than 20,000 jobs, and contribute between US$100 million and US$200 million annually in government revenues.
The consortium has also promoted a model emphasizing Liberian participation, government free-carry provisions, local procurement, and infrastructure development including roads, railways, power systems, schools, and hospitals.
