Western Cluster Limited (WCL) has assured the government of Liberia that the company will conduct thorough internal reviews where required and will immediately take appropriate remedial action wherever there is any allegation of transgression or violation of any law or regulations.
At a press conference on Monday addressed by the Lead ER/PR Administrator, Samuel Brown, in Monrovia, the company further promised the Liberian Government and people that it is prepared to institute corrective measures to ensure that no person stands at a loss, injury, or any inconvenience by its operations.
WCL, a subsidiary of Sesa Goa, a Vedanta group company, is engaged in iron ore mining in Western Liberia and since 2011, approximately US$300 million has been invested in Liberia by Western Cluster Limited and its parent company Sesa Goa, a subsidiary of Vedanta Limited.
Reiterating its commitment to contribute to the socio-economic development in the region, through sustainable business operations, community and infrastructural development initiative, Brown said WCL has paid as Social Development Fund contributions amounting to approximately US$15.5 million.
However, the WCL PR administrator said the Memorandum of Understanding (MOU), which is a temporary instrument that does not affect the company’s Mineral Development Agreement, has been misrepresented in the media for various baseless and unfounded reasons.
He explained that the Mineral Development Agreement provides for suspension of obligations where there is a force majeure situation and that the company intends to honor the Mineral Development Agreement and its commitments to the Liberian Government and the people of Liberia.
WCL said it is committed to working with the Liberian Government and its people for the mutual benefit of all sides noting, “We affirm our commitment to work within the framework of the original Mineral Development Agreement, its amendments and any other rules and regulations, which relates to our operations in Liberia.
We wish to also assure the Liberian Government and people of our commitment to comply with and abide by all applicable laws, which control or cover our mining operations, especially the Decent Work Act, so that maximum opportunity will be given to Liberians for training and employment.”
In 2022, the company sought to resume its operations; and to facilitate its resumption of operations, a Memorandum of Understanding (MOU) was executed between WCL and the Liberian Government, pending the negotiation of an amendment to the Mineral Development Agreement.
The Mineral Development Agreement originally envisaged Western Cluster using railway route from Mano River to River Congo and Bomi Hills to Freeport as is being used by NIOC and LMC respectively; however, the Western Clusters have not yet been allowed access to the aforesaid railway routes, which makes the Western Clusters economically and logistically almost unviable
The Mineral Development Agreement provides for its amendment due to profound change in circumstances and amendment will therefore consider all the profound changes, which have occurred since the Mineral Development Agreement was signed in August 2011 and one of these profound changes, among others, is that Vedanta Limited now owns 100% of WCL.
Vedanta Limited is a multi-billion-dollar mineral resource company and its operations are spread in several countries. The operations of Vedanta Limited are strictly consistent with fundamental principles of good corporate governance with utmost focus on inclusive growth.
WCL’s operations in Liberia were suspended due to force majeure situations (the Ebola Virus outbreak and the Covid-19 pandemic); which are valid reasons for the suspension of obligations of the Mineral Development Agreement.
The Memorandum of Understanding is the enabling legal instrument to facilitate the resumption of operations of Western Clusters after the force majeure situation had expired; Western Clusters could not resume operations without such enabling legal instrument.
WCL is also working on generating direct and indirect employment opportunities for the locals, across its core and allied business functions and generating collateral investment opportunities for Liberians.
