ArcelorMittal and the Government of Liberia have finalised an amendment to their Mineral Development Agreement (MDA), extending the pact until 2050, with an option for a 25-year renewal.
This agreement was approved through the legislative process in Liberia.
It underscores ArcelorMittal's commitment to its mining operations within the country and aligns with the government's aim to open the Tokadeh-to-Buchanan rail corridor to multiple users.
This agreement coincides with the recent launch of ArcelorMittal's iron ore concentration facility in Nimba County, marking Liberia's emergence as a notable hub for mineral development in West Africa.
The concentrator is a central component of the company's $1.8bn (€1.5bn) expansion project, which has increased its total investment in Liberia to $3.5bn.
This development represents the largest foreign direct investment in the nation's economy since its civil war.
Additional investments as part of the expansion include enhancements to rail infrastructure between Tokadeh and Buchanan and upgrades to port facilities, such as the addition of a new berth in Buchanan and two power plants.
The expansion aims to boost iron ore shipments from approximately five million tonnes per annum (mtpa) to 20mtpa by 2026, along with improvements in ore quality.
Liberia President Joseph Boakai said: “ArcelorMittal Liberia is one of Liberia’s largest private sector investors and a leading employer in the country. I welcome this Third Agreement to the concession agreement, which will unlock a major expansion of ArcelorMittal Liberia’s operations, with production increasing to 20mt and projected to grow to 30mt.
“The agreement will establish an independently operated railway from October 2030, which will strengthen efficiency, promote multi-user access and deepen the overall impact of the concession on the national economy.”
The newly amended MDA outlines conditions for shared use of the rail infrastructure, requiring other users to invest in its expansion.
ArcelorMittal is enhancing the railway's capacity to potentially handle up to 30mtpa of iron ore, depending on the outcomes of ongoing feasibility studies.
Furthermore, under the terms of the agreement, ArcelorMittal has pledged a payment of $200m to the Government of Liberia in exchange for specific rights attained through the agreement, notably extending mining rights and securing reserved rail capacity.
The company has played a key role in Liberia's economic development, providing direct and indirect employment to around 8,000 people and contributing substantially to taxes.
