Deputy House Speaker Fonati Koffa says he hopeful that the third Amendment to the ArcelorMittal Liberia (AML) Mineral Development Agreement (MDA) will be ratified by the Legislature.
The Grand Kru County lawmaker in an live radio recently further described the company as a major investor and stakeholder that has done more positive things in Liberia, noting, “Remember this, it’s a ‘catch twenty-two’ ArcelorMittal is a major investor in the country A major stakeholder. If I were to rate them between the good and bad, they have done more positive things than negative.”
Deputy Speaker Koffa further attributed the House of Representatives action on the Amended AML MDA to a slip by the Executive branch of government in the negotiation process.
According to him, it would be prudent had the executive, during the negotiation process focused on a performance audit of the AML’s current MDA, to ascertain the company’s level of compliance, amidst claims and counter claims by its stakeholders.
“What the House was looking for was the Executive to do a little more of accountability, giving the noise surrounding what Mittal has done or not done. When you give us that report, then, we will be able to put ourselves in a better position to explain to our citizens the process of the ratification and our mindset in ratification,” he emphasized.
The Deputy Speaker then recognized ArcelorMittal Liberia’s contributions as a major investor and stakeholder to Liberia, adding that the company has done better for the country.
However, the ArcelorMittal Liberia’s third MDA amendment when ratified would see the company invest an additional amount of more than USD 1 billion, making it the largest Foreign Direct Investment under President Georg Weah’s administration.
The expansion project includes the construction of a new concentration plant and the substantial expansion of mining operations, with the first concentrate expected in late 2023, ramping up to 15 million tonnes per annum (mtpa) and expanding up to 30 mtpa.
The project will create at least 2,000 new jobs, mainly for young people in the next three years, and generate a massive increase in socio-economic benefits in taxes, county social development, and training of Liberians among others. Following the construction of the concentration additional 1,200 permanent new skilled positions would be created for Liberians.
Under the Amended Agreement, AML’s contribution in taxes and other payments will increase to more than US$75 million annually, while also increasing its annual support to the County Social Development Funds of Grand Bassa, Nimba, and Bong counties to US$3.5 million. 20 percent of that amount will be used to fund development projects in communities directly impacted by the company’s mining operations.
It can be recalled that in September last year, the Government of Liberia and ArcelorMittal signed the landmark Third Amendment to the company’s Mineral Development Agreement, signalling the commencement of one of the largest mining projects in West Africa.
