Capitol Hill, Monrovia, Liberia – the upcoming takeover of the Putu Iron Ore Mining Concession by the Iron Ore Group (IOG) faces stiff resistance as Consultant Jacob C. Debee, II of Grand Gedeh District #3, has referred to as on the Authorities of Liberia (GoL) to implement strict situations earlier than approving the proposed deal.
By Emmanuel Weedee-Conway
Talking at a information convention held at his Capitol Constructing workplace, the Gbarzon Statutory District Consultant warned that the brand new operator should totally honor the unique settlement’s commitments to native communities and nationwide improvement.
Rep. Debee recounted that the unique operator, Putu Iron Ore Mining, Inc. – owned by Russian metal large Severstal, signed a 25-year Mineral Growth Settlement (MDA) with the federal government on September 2, 2010. The corporate, holding a Class-A Mining License legitimate till 2035, halted operations in 2014 through the Ebola disaster and has since deserted the manufacturing space.
The Proposed Takeover
Lately, IOG has been negotiating to accumulate Putu’s belongings from Severstal. The Hong Kong–primarily based Financial institution of Asia Group, by means of its subsidiary Financial institution of Asia Worldwide Asset Administration Restricted, reportedly holds IOG’s possession in belief. The corporate’s curiosity within the Putu Venture is predicted to be transferred to African Iron Ore Company (AIOC), a Mauritius-registered entity.
An preliminary Memorandum of Understanding was signed in 2021 between IOG, Putu, and the GoL, however progress stalled as a result of COVID-19 pandemic, worldwide sanctions on Russian entities, and Liberia’s 2023 elections. In August 2024, IOG and Severstal concluded a Sale of Shares Settlement, with authorities approval now pending by means of a “Change of Management” course of.
IOG tasks a US$3 billion funding in rail, port, energy, water, and processing services, aiming to supply 25 million tons of high-grade iron ore yearly for the worldwide market, particularly China. The lifetime of the mine is estimated at 30–50 years, doubtlessly producing US$2–3 billion in annual export revenues.
Considerations Over Commitments
Whereas acknowledging the challenge’s nationwide financial potential, Consultant Debee expressed concern that IOG’s focus seems closely skewed towards manufacturing and export infrastructure, with imprecise commitments to group improvement and employment.
Below the unique settlement, Putu was obligated to do the next: Pay annual social improvement contributions, together with almost US$250,000 for schooling and analysis, construct a two-lane paved street between Greenville and Zwedru, assemble a railroad and business port with a one-million-metric-ton annual capability, set up a hospital with preventive and healing providers and make use of at the very least 30% Liberians in administration roles inside 5 years, together with 30% of the highest ten senior positions.
Nonetheless, the Grand Gedeh District #3 lawmaker insisted that these commitments should stay non-negotiable situations in any switch of the concession.
Warning Towards a 35-12 months Monopoly
The lawmaker additionally opposed IOG’s request to take over the remaining 10 years of Putu’s MDA whereas additionally securing a brand new 25-year settlement, thus successfully locking in 35 years of management.
He advisable that any determination on a brand new long-term deal be primarily based on IOG’s efficiency through the current 10-year interval.
Suggestions to GoL
Rep. Debee outlined key calls for for the federal government earlier than granting approval.
In his suggestions, he craved that IOG present stable proof of monetary capability to execute the challenge implement all unique social, medical, instructional, and employment obligations from the Putu MDA and make these obligations situations of default, permitting the federal government to terminate the settlement if unmet.
He additionally advisable that authorities delays any new 25-year deal till the prevailing 10 years have been applied efficiently and guarantee any revised settlement undergoes legislative ratification.
“The Putu Venture is a crucial nationwide funding,” Debee concluded. However it should profit not simply international shareholders, it should remodel lives in Grand Gedeh, Sinoe, and River Gee, and contribute meaningfully to Liberia’s improvement,” added Rep. Debee.
