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September 13, 2021

ArcelorMittal to invest $800m to boost iron ore production in Liberia

The deal allows the firm to triple its iron ore production in Liberia to 15mtpa in the next three years.

Luxembourg-based steelmaker ArcelorMittal has reached an agreement with the Government of Liberia that will allow the firm to expand iron mining and logistics operations in the country.

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The two parties have signed an amendment to the Mineral Development Agreement (MDA) that would significantly increase the firm’s premium iron ore production while generating wider economic benefits for the country.

Following the signing of a 25-year deal with Liberia in 2005, ArcelorMittal shipped its first iron ore in 2011 from the Yekepa mine.

Although the firm intended to expand the mine’s output to 15 million tonnes per annum (mtpa), the expansion plan was put on hold in 2014.

This was due to the declaration of force majeure on the project as a result of the Ebola outbreak in West Africa.

With the latest agreement, ArcelorMittal will invest an additional $800m to boost iron ore production in the country from 5mtpa to 15mtpa within the next three years.

Expected to be one of the largest mining projects in West Africa, the expansion project will involve processing, rail and port facilities.

Liberia President George Manneh Weah said: “I am further informed that the agreement contains several benefits that are important to the Liberian people.

“For example, to name a few, the government is to receive $55m to reserve 15 million metric ton capacity for ArcelorMittal; and $10m signing bonus, for a total of $65m.”

ArcelorMittal plans to commission the expansion project, which will include the construction of a new concentration plant, in late 2023.

The latest agreement allows the firm to increase the iron ore production up to at least 30mtpa, with provision for other users to invest in additional rail capacity.

This expansion project is expected to create more than 2,000 construction jobs, at least 1,000 direct jobs and roughly 4,000 indirect jobs.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
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