ArcelorMittal Liberia has threatened legal action against the Government of Liberia regarding a proposed agreement allowing Ivanhoe Atlantic access to the railway. AML argues this infringes upon its Mineral Development Agreement. The government is advancing towards a multiuser rail system aimed at enhancing economic revenue from multiple mining firms. Legal backing supports the GOL’s position, while public sentiment largely favors the new policy.
The situation surrounding Liberia’s railway infrastructure is escalating as ArcelorMittal Liberia (AML) has threatened legal action against the Government of Liberia (GOL) regarding a proposed agreement that would allow Ivanhoe Atlantic access to the railway. AML’s Chief Executive Officer, Michiel van der Merwe, stated in a leaked email that this plan breaches AML’s existing Mineral Development Agreement (MDA). The conflict arises as Liberia seeks to implement Executive Order 136, enabling multiple mining firms to utilize its rail system post-2030, when AML’s monopoly expires.
ArcelorMittal argues that the government’s negotiations with Ivanhoe Atlantic undermine its legal rights under the MDA. The company claims that allowing Ivanhoe access to allocated rail capacity would compromise AML’s operations and violates established procedures for capacity determination. AML expresses concerns about its significant investments, amounting to over US$3 billion, at risk with the potential end of its exclusive operational control.
Should the government proceed with this agreement, AML warns of a breach of contractual obligations and intends to pursue all available remedies under Liberian law and international arbitration frameworks. An insider from the GOL remarked that the government will leverage its infrastructure for national benefit. Furthermore, AML has historically resorted to litigation to safeguard its interests, indicating a potential for drawn-out legal disputes.
Despite AML’s aggressive stance, the GOL has received legal backing from the former Minister of Justice, Cllr. Frank Musah Dean, who clarified that the proposed multiuser access does not breach the MDA. He emphasized the government’s sovereign rights over its infrastructure assets and highlighted that specific sections of the MDA allow for third-party access. The government’s motivations also align with the broader strategy to enhance national economic opportunities.
The shift towards a multiuser rail system aims to create a more competitive environment for mining companies and unlock necessary investments. Independent experts believe that this model could significantly boost job creation and government revenue, contradicting AML’s claims of exclusive railway utilization. The GOL’s Inter-Ministerial Concessions Committee is advancing with plans to fully implement the multiuser model and potentially select an independent operator before the expiration of Executive Order 136.
As of now, Ivanhoe Atlantic appears prepared to fulfill the proposed commitments, while AML grapples with its legal and operational maneuvers. With public sentiment largely favoring the government’s multiuser rail policy, the next steps taken by AML could significantly influence its relationship with the GOL and future investment in Liberia’s mining sector. The coming days will reveal whether AML will adapt to the new framework or escalate its legal confrontations, impacting the trajectory of Liberia’s economic development.
In conclusion, the ongoing dispute between ArcelorMittal Liberia and the Government of Liberia over railway access presents critical implications for the nation’s economic future. The GOL is firmly committed to implementing a multiuser rail system, a strategy aimed at enhancing economic competitiveness and increasing revenue opportunities. Despite AML’s threats of legal action, both the legal opinions and public sentiment indicate strong support for the multiuser policy. Thus, the forthcoming decisions from AML will likely determine not only their operational scope but also the overall direction of Liberia’s mining industry.
Original Source: www.liberianobserver.com
