Yekepa-Buchanan -In a transfer that has surprised each business observers and Liberia’s worldwide companions, the Liberian authorities has reportedly reversed the Inter-Ministerial Concessions Committee (IMCC)’s determination to retain ArcelorMittal Liberia (AML) because the operator of the Yekepa-Buchanan railway. This determination not solely weakens Liberia’s funding credibility but additionally threatens to unravel almost 20 years of hard-earned progress in rail infrastructure improvement.
The railway in query, rehabilitated and operated by ArcelorMittal beneath the phrases of its Mineral Growth Settlement (MDA), is Liberia’s most strategic financial hall. It isn’t only a piece of infrastructure; it’s the artery by which the nation’s largest supply of overseas direct funding flows. To immediately jeopardize the authorized and operational framework that has guided the system since 2006 is an act of self-sabotage at a time when Liberia can least afford it.
A Historical past of Good Religion and Compliance
Opposite to the political noise that now surrounds the talk, the suitable of third-party entry and the reversion of possession of the rail and port to the Authorities of Liberia had been clearly established within the First Modification to AML’s MDA, ratified in 2007. AML has by no means opposed shared use of the railway. Quite the opposite, it has participated in a number of discussions through the years with potential third-party customers. These engagements failed not due to AML’s resistance, however as a result of exterior elements together with political interference, financial instability, and the collapse of would-be companions.
Take the case of SMFG, now owned by Excessive Energy Exploration (HPX). The unique house owners, BHP, held discussions with ArcelorMittal in 2010 to kind a three way partnership throughout the Guinean-Liberian border, however the talks collapsed over valuation disagreements. Even later, when AML expressed willingness to amass SMFG from BHP, the Authorities of Guinea blocked the association, preferring a special political path through Rio Tinto. This refusal had nothing to do with AML’s openness, and every part to do with Guinea’s inner politics.
Sable Mining was one other aspirant in 2013, however their method to rail entry was commercially incoherent. They demanded AML buy their ore on the border, with out offering essential specs essential for technical and financial feasibility. Their collapse throughout the Ebola disaster and amid corruption scandals, together with the high-profile Varney Sherman saga, additional demonstrated that AML’s rail was not the problem. The difficulty was—and stays—the shortage of viable third-party gamers.
A Harmful Precedent
Given this historical past, the federal government’s determination to strip AML of operator standing seems pushed extra by political expedience and exterior lobbying than sound financial technique. No Liberian mining firm has ever requested entry to the railway. Solely Guinean firms—these with out Liberian obligations, jobs, or infrastructure commitments—have tried and did not safe credible utilization. But it’s AML that has persistently upgraded and maintained the rail system, at no revenue to itself when working it for third events.
It is usually vital to underscore that the IMCC’s current suggestion to maintain AML as operator was not unilateral—it adopted in depth consultations and was embedded within the Third Modification to the MDA, which outlines the Rail System Working Rules (RSOP). Beneath these rules, third-party entry is permitted, AML operates the system at value (not for revenue), and the Authorities maintains regulatory and supervisory management, together with the suitable to revoke AML’s working position in case of non-performance. It’s a balanced framework—a governance mannequin that promotes shared entry with out sacrificing operational effectivity.
Undermining Confidence and Funding
By reversing this determination, the federal government is sending a chilling sign to present and potential buyers: that long-term agreements, infrastructure contributions, and adherence to regulatory frameworks may be overturned for short-term political acquire. This not solely endangers AML’s multi-billion-dollar Part II growth but additionally threatens hundreds of Liberian jobs, social improvement tasks, and regional financial stability.
Furthermore, the reversal could expose Liberia to authorized liabilities for breaching the sanctity of a ratified settlement. Investor confidence, as soon as misplaced, isn’t simply regained. If the federal government believes that overseas stress or different operators will higher serve nationwide pursuits, it should show so with details, transparency, and lawful course of—not reckless U-turns that threat Liberia’s improvement trajectory.
The Approach Ahead
As a substitute of dismantling a working mannequin, the federal government ought to give attention to strengthening regulatory oversight, bettering coordination between stakeholders, and guaranteeing that any third-party entry is technically possible, commercially sound, and legally compliant. Liberia should not commerce stability for expediency.
If we’re to draw critical funding and construct a reputable infrastructure spine for the long run, choices like these should be made with sober judgment—not pushed by overseas lobbying, misinformation, or political short-termism. Liberia deserves higher. And so do the hundreds of residents whose livelihoods depend upon the continued progress of our mining sector.
