HPX, a mining company led by Robert Friedland, is under scrutiny for its proposed $5 billion rail project in Liberia aimed at exporting iron ore from Guinea’s Nimba deposit. Critics question its feasibility amid Guinea’s long-held policy of resource sovereignty and the new Trans-Guinean Railway project. Calls for transparency grow as HPX has yet to substantiate claims of approval from Guinea’s authorities, leading to significant skepticism about the project’s viability.
High Power Exploration (HPX), a mining company spearheaded by billionaire Robert Friedland, is facing increasing skepticism regarding its ambitious plan to secure rail access in Liberia to transport iron ore from Guinea’s Nimba deposit. Industry analysts and regional policymakers are questioning both the feasibility and the intentions behind HPX’s proposed $5 billion infrastructure project, suggesting it contradicts Guinea’s long-held principle of resource sovereignty and its new rail initiative.
For over sixty years, successive Guinean governments denied the export of their iron ore through Liberia, insisting that mining corporations develop domestic infrastructure for processing and transporting their minerals. This policy, which stems from a strong sense of economic nationalism, aimed to preserve Guinea’s control over its mineral wealth. Although Guinea appeared to relent under former President Alpha Condé’s administration—allowing small-scale miners to use Liberia’s rail and port systems—his ousting in a 2021 military coup marked a return to previous priorities.
In 2023, Guinea’s geopolitical strategy dramatically shifted with the establishment of a major deal between Rio Tinto and Singapore-based Winning International Group to construct the Trans-Guinean Railway. This extensive 650-kilometer rail line, already 80% complete, will connect Guinea’s Simandou iron ore reserves to a new deepwater port in Conakry, with projections indicating it will be operational by late 2025. Critically, HPX’s Nimba mine is situated only 130 kilometers from this new rail corridor, leading analysts to suggest it would be less expensive to utilize that line than to develop a new 240-kilometer rail through Liberia.
Economic experts, such as Mamadi Trawally, criticize HPX’s proposal, asserting, “Economically, this makes no sense. Why spend $5 billion in Liberia when Guinea’s own rail system could be leveraged at a fraction of the cost? This looks less like a serious proposal and more like a pressure tactic.” Furthermore, HPX has claimed it would transport 25 million tonnes of Guinean ore annually through Liberia but has struggled to substantiate its assurances with actual documentation from Guinean authorities.
HPX’s failure to provide proof has led to suspicions of misinformation. Liberian activist James Flomoku emphasized this, stating, “HPX is selling a fantasy. The Condé-era agreements are dead. Guinea’s new leadership has made it clear: their resources will transit their infrastructure.” The company’s strategy is also drawing scrutiny from U.S. officials, who see little rationale for Guinea to endorse a competing rail project that threatens its own significant investment.
As pressure mounts on Liberian President Joseph Boakai’s administration, civil society advocates are urging a rejection of HPX’s proposal unless there is definitive proof of Guinea’s approval. Abigail Weedor from the Liberian Civil Society Initiative articulated concerns about the potential for HPX’s project becoming a financial burden, stating, “HPX wants Liberia to gamble billions on a railway Guinea could veto overnight.”
With the completion of the Trans-Guinean Railway imminent, observers argue that HPX must demonstrate its proposal’s viability under the new political landscape created by Guinea’s leadership change. “The reset button has been hit in Guinea,” remarked analyst Aissata Diallo, calling for HPX to either adapt to this new environment or concede that its project was a misguided endeavor. For now, Liberia awaits clarity on this contentious issue.
The controversy surrounding HPX’s proposed Liberian rail project stems from Guinea’s longstanding policy of prioritizing domestic control over resource transportation. For over sixty years, Guinea has maintained strict regulations against exporting its minerals through Liberia, which has shaped the local mining industry. Recent geopolitical shifts, particularly following a new agreement for the Trans-Guinean Railway, challenge HPX’s plans, raising questions about the feasibility of their $5 billion investment amidst changing regional dynamics.
The mounting skepticism surrounding HPX’s Liberia rail project raises critical questions about its feasibility and financial prudence, especially in light of Guinea’s historical stance on resource management. As regional dynamics shift and Guinea’s focus returns to using its own infrastructure for mineral transport, HPX faces increasing pressure to provide concrete assurances of support from Guinean authorities. The situation underscores the challenges foreign investment projects face in a complex geopolitical landscape.
Original Source: frontpageafricaonline.com
