MONROVIA – ArcelorMittal Liberia (AML) has taken its authorized battle with the Liberian Petroleum Refining Firm (LPRC) to the Supreme Courtroom after shedding a high-profile case on the Sixth Judicial Circuit Courtroom.
By Willie N. Tokpah
On August 21, the decrease courtroom dominated in opposition to AML in a dispute centered on security guidelines and compliance with Liberia’s petroleum legal guidelines, significantly relating to the corporate’s development of two petroleum storage tanks at its services in Buchanan, Grand Bassa County and Yekepa, Nimba County. AML insists the tanks are essential for its operational effectivity and vitality independence.
In its petition, AML argued that below Article 24, Part B of its 2007 Amended and Ratified Mineral Growth Settlement (MDA)—a regulation enacted by the Liberian Legislature—it has express rights to import gas for its operations with out interference from any regulatory authority not expressly talked about within the settlement.
The LPRC, nonetheless, citing its 1989 Unique Rights Act, asserted regulatory management over the development of petroleum storage services. The corporate imposed fines totaling US$150,000 on AML and demanded a further US$100,000 allow charge.
Whereas AML transferred the US$100,000, it later clarified that the cost was made as a “goodwill gesture” to help LPRC’s investigation and didn’t represent recognition of LPRC’s regulatory authority.
The courtroom nonetheless sided with LPRC, ruling that the 1989 Act grants the state-run firm authority to control all elements of petroleum dealing with, together with storage infrastructure.
The courtroom additional dominated that AML’s rights below the MDA don’t quantity to a regulatory exemption.
Nonetheless, AML is just not backing down.
By way of lead counsel Atty. Ernest Y. Dunbar, the corporate, instantly took an exception to the ruling and introduced an attraction to the Supreme Courtroom, asserting that the decrease courtroom misinterpreted the intent and authorized weight of its ratified concession settlement.
“This case isn’t just about tanks and permits. It’s concerning the sanctity of contracts and authorized certainty for buyers working below agreements ratified by Liberia’s Legislature,” stated an AML authorized official.
“We’re interesting as a result of the long-term funding local weather in Liberia relies on readability and respect for the rule of regulation.”
A Precedent with Nationwide Implications
Observers consider the end result of this attraction may redefine the stability of energy between concessionaires and state-owned enterprises in Liberia.
If AML’s attraction is upheld, it could reinforce the primacy of concession agreements over common statutes in circumstances the place the 2 seem to battle.
AML argues that LPRC’s place threatens not solely the integrity of its MDA but in addition opens the door to “arbitrary interference” in private-sector operations by state entities not expressly granted oversight in concession agreements.
“We can not have each authorities company claiming blanket jurisdiction over concession operations,” stated one authorized analyst, talking on situation of anonymity.
“That’s a method for regulatory chaos.”
Authorized Gray Areas and Investor Considerations
AML has additionally warned that the decrease courtroom’s interpretation may deter future international direct funding if firms really feel they can’t depend on agreements signed on the highest ranges of presidency.
In response, LPRC, backed by Sherman & Sherman Legislation Agency, argued that AML’s try and bypass its authority represents a direct problem to its statutory mandate to make sure the protected and correct dealing with of petroleum merchandise in Liberia.
However AML maintains that such duties lie inside the scope of different related establishments, such because the Environmental Safety Company (EPA), not LPRC, particularly the place development and security requirements are involved.
Because the case heads to the Supreme Courtroom in its October Time period 2025, each authorized and enterprise communities might be carefully watching what could develop into a defining judgment in Liberia’s regulatory and funding framework.
