The Government of Liberia has directed ArcelorMittal Liberia to grant Ivanhoe Atlantic access for an Environmental and Social Impact Assessment (ESIA) along the Yekepa-Buchanan railway corridor. This move supports the implementation of Liberia’s multiuser rail policy, aiming to enhance economic benefits and diversify access to the railway. The ESIA is critical for evaluating impacts and preparing for the expected influx of mining activities.
The Government of Liberia has requested ArcelorMittal Liberia (AML) to grant Ivanhoe Atlantic access for an Environmental and Social Impact Assessment (ESIA) along the Yekepa-Buchanan railway corridor. This request, made by the Ministry of Mines and Energy and the Ministry of Transport, marks a significant advancement in the implementation of Liberia’s multiuser rail policy, aimed at enhancing economic benefits and ensuring regulatory compliance.
The request to AML’s CEO, Michiel van der Merwe, specifies that the ESIA will occur from March 17 to 21, 2025. The Ministry of Mines and Energy referenced the Mineral Development Agreement (MDA) of 2005, highlighting that Ivanhoe Atlantic, as a licensed entity in Liberia, must be allowed to conduct the assessment as part of its due diligence. The Ministry of Transport reiterated that the Environmental Protection Agency (EPA) mandates the ESIA prior to Ivanhoe Atlantic’s operations, assuring AML that existing activities will not be disrupted.
The Yekepa-Buchanan railway, which spans 360 kilometers and is vital for iron ore exports, has been exclusively operated by AML under its MDA. However, Liberia’s government, through Executive Order 136, is committed to a multiuser rail model that will open the corridor to multiple companies, facilitating economic development. This directive represents a transition from policy discussion to implementation, as Ivanhoe Atlantic’s access is essential for the anticipated evacuation of vast iron ore quantities.
An ESIA is essential prior to large-scale industrial projects, assessing environmental, social, and economic ramifications to identify and mitigate risks. In the context of mining and rail transport, the study will analyze community impacts, environmental risks such as pollution and biodiversity loss, and the safety of rail infrastructure to support increased usage, leading to job creation and community development.
Despite AML’s historical resistance to a multiuser model, the government has clarified that AML cannot obstruct the ESIA, as it is a regulatory requirement rather than a negotiation point. There have been legal challenges from AML against implementing this model, including threats of arbitration if its exclusive rights are reduced. However, the legal interpretation affirms the government’s sovereignty in managing rail access, reinforcing its commitment to expanding the railway system.
This development also inspires investor confidence, as Liberia seeks international partners to explore its iron ore deposits. The previous monopolistic control by AML has posed challenges for potential investors. Now, with Ivanhoe Atlantic initiating its ESIA, this change signals Liberia’s determination to create a competitive environment, potentially accelerating investments in related infrastructure.
AML must decide whether to comply with the government’s directive or resist, which could lead to increased tensions with the authorities. The presence of officials from the Ministry of Transport overseeing the process may hinder AML’s ability to obstruct the assessment. Meanwhile, Ivanhoe Atlantic will commence feasibility studies for the Liberty Corridor project, aiming to diversify rail infrastructure.
Liberia’s progression toward enabling Ivanhoe Atlantic’s ESIA signifies a pivotal advancement in the country’s economic landscape and underscores the government’s commitment to a multiuser rail system, promoting broader stakeholder participation and competitive investment opportunities.
The Government of Liberia’s directive to allow Ivanhoe Atlantic to conduct an ESIA along the Yekepa-Buchanan railway marks a transformative step towards implementing a multiuser rail policy. This initiative not only aims to expand economic activities and regulatory compliance but also challenges AML’s monopolistic control. As Liberia prepares for this transition, it signals investor confidence in a more open and competitive economic environment. The next steps regarding AML’s response and Ivanhoe Atlantic’s operational plans will undoubtedly shape the future of Liberia’s railway infrastructure and mining sector.
Original Source: www.liberianobserver.com
