ArcelorMittal Liberia warns the Government of Liberia of potential legal action regarding a multiuser rail access agreement with Ivanhoe Atlantic, asserting it violates their Mineral Development Agreement. The government’s commitment to a multiuser rail system aims to bolster economic growth and attract investments, despite AML’s objections and threats. A pivotal legal opinion supports Liberia’s sovereign rights, signaling a determination to reform the railway framework before substantial changes by 2030.
The contention surrounding Liberia’s railway infrastructure has escalated as ArcelorMittal Liberia (AML) cautions the Government of Liberia (GOL) about potential legal repercussions should it move forward with a proposed multi-user rail agreement granting access to Ivanhoe Atlantic. Michiel van der Merwe, CEO of AML, articulated that such an agreement contravenes AML’s existing Mineral Development Agreement (MDA). This development coincides with Liberia’s push to implement Executive Order 136, which aims to establish an independent rail operator regime, diminishing AML’s railway monopoly by 2030.
AML vehemently asserts that the government’s dealings with Ivanhoe Atlantic jeopardize its legal rights under the MDA. The company claims that granting Ivanhoe an initial rail capacity of 5 million tonnes per annum (mtpa) diminishes AML’s operational capabilities. Furthermore, AML contends that the agreement allows Ivanhoe to build additional infrastructure for up to 30 mtpa, which they argue violates AML’s right of first option concerning capacity expansion.
Alongside concerns about rail access, AML expresses disquiet regarding the government’s intentions to grant Ivanhoe use of the port facilities in Buchanan, perceiving this as a breach of agreement. AML has communicated that proceeding with the Ivanhoe deal would prompt it to pursue legal remedies, stating that it would contest the decision on grounds of MDA violations. A GOL insider indicated the government’s stance, asserting their right to leverage infrastructure based on national economic interests.
Despite AML’s aggressive legal threats, the government’s position remains unwavering, with Minister of Mines and Energy Wilmot Paye committing to the implementation of a multiuser rail system. A legal opinion issued by former Minister of Justice, Cllr. Frank Musah Dean, supports the government’s claims, stating that multiuser access is permissible under the MDA and emphasizing Liberia’s sovereign rights over its infrastructure.
Liberia’s movement towards a multiuser rail system aims to enhance its economic strategy by leveraging the Yekepa-Buchanan railway. Experts argue that AML’s past monopoly has impeded economic progress, while diverse mining operations could catalyze economic growth, attracting investments and generating employment. The anticipated benefits include substantial government revenue from Ivanhoe Atlantic alone.
The GOL intends to implement steps towards a multiuser rail system, including finalizing agreements and selecting an independent rail operator, with Ivanhoe Atlantic signaling readiness to begin operations. As AML faces significant challenges, it must choose between continuing its legal battles or negotiating in harmony with the government’s evolving rail policy. Observers note a favorable public sentiment towards multiuser rail access, supporting governmental objectives. The coming days will be pivotal in determining AML’s course of action and its ability to adapt in a transformative economic environment.
The conflict surrounding Liberia’s railway infrastructure between ArcelorMittal Liberia and the Government of Liberia signifies a critical shifting point in national economic strategy. Despite AML’s legal threats, the GOL is poised to transition towards a multiuser rail system in alignment with Executive Order 136. Insights from legal opinions and public sentiment favoring multiuser access indicate a growing commitment to economic sovereignty. The outcome of this dispute will not only impact the operational landscape for mining companies but also Liberia’s broader economic aspirations.
Original Source: www.liberianobserver.com
