ArcelorMittal Liberia (AML) threatens legal action against the Government of Liberia (GOL) over proposed multiuser rail access for Ivanhoe Atlantic, claiming it violates their Mineral Development Agreement. GOL remains committed to the multiuser rail system to enhance revenue from iron ore exports. Legal opinions back GOL’s position that existing agreements allow for such access. The ongoing conflict reflects broader economic strategies and the pressing need for infrastructure reform in Liberia.
In Liberia, tensions have heightened regarding railway infrastructure as ArcelorMittal Liberia (AML) warns the Government of Liberia (GOL) of impending legal action if multiuser rail access is granted to Ivanhoe Atlantic. AML’s CEO Michiel van der Merwe stated that this agreement would breach their current Mineral Development Agreement (MDA), which provides them exclusive rail access. This situation arises as Liberia seeks to implement Executive Order 136, allowing multiple mining firms access to railway services, aimed at boosting economic revenue from iron ore exports.
AML claims that the government’s plan to allow Ivanhoe Atlantic to utilize 5 million tonnes per annum (mtpa) of rail capacity undermines its operational integrity and violates procedures for access rights. They argue that the ability for Ivanhoe to construct additional infrastructure infringes upon their “right of first option” for capacity expansion. Furthermore, AML asserts that this transition threatens its $3 billion investment, especially as it plans for future enterprise involving the railway.
AML has warned GOL that proceeding with the Ivanhoe agreement could lead to legal repercussions, citing a violation of the MDA. The company indicated it would pursue all legal avenues, fearing that losing control would disrupt its business plans. Despite this, GOL officials maintain their stance on implementing a multiuser rail system, emphasizing the national advantage of unlocking new revenues from the iron ore sector for Liberia.
In response to AML’s claims, a legal opinion from Cllr. Frank Musah Dean, the former Minister of Justice, confirms that granting Ivanhoe rail access does not breach the MDA. He highlighted provisions in the MDA that foresaw multiuser access and noted that AML had shown willingness for cooperation on a multiuser model. Moreover, the lack of absolute rights for AML reinforces Liberia’s legal authority in guiding its infrastructure usage.
Africa’s shift towards a multiuser rail system is central to its goals for economic sovereignty. The Yekepa-Buchanan railway, a major developmental asset, could instead facilitate multiple mining firms, contributing to government revenue and job creation over time. Analysts argue that AML’s monopoly has hindered Liberia’s economic opportunities, thus advocating for increased competition through a multiuser framework.
As GOL pushes forward with multiuser dealings, including finalizing national standards, AML must decide whether to fight for its monopoly or engage collaboratively with Liberia’s economic policies. Ivanhoe Atlantic has signaled readiness to participate in this multiuser transition, while AML’s decades-old control faces heightened scrutiny from the public and government alike. Observers question the viability of AML’s legal threats given its previous MDA defaults and widespread support for government policy among citizens.
The coming days appear decisive for this ongoing battle; decisions made soon may indicate whether AML can adapt to the changing landscape or if it will face extensive legal challenges to retain its long-standing monopoly on Liberia’s rail access.
The tension between ArcelorMittal Liberia and the Liberian government highlights the complex struggle over railway infrastructure access and economic strategy. As the government pushes for a multiuser rail system to enhance economic opportunities, AML’s legal threats illustrate the fierce competition surrounding resource control. The outcomes of this dispute could significantly influence Liberia’s economic landscape and the roles of existing and new stakeholders in utilizing its rail infrastructure.
Original Source: www.liberianobserver.com
