Washington D.C. – The controversial rail-access deal between the Authorities of Liberia and Ivanhoe Atlantic—now earlier than the Legislature for ratification—has suffered a serious setback after a senior member of the USA Congress warned that the undertaking may deepen China’s management over essential minerals in Africa.
Congressman John Moolenaar (R-MI), Chairman of the U.S. Home Choose Committee on the Chinese language Communist Social gathering (CCP), raised alarms over the multibillion-dollar rail hall, cautioning that U.S. authorities help for the undertaking may “unwittingly strengthen Beijing’s world mineral chokehold.”
In a letter despatched Tuesday to U.S. Secretary of State Marco Rubio, Moolenaar questioned the State Division’s favorable posture towards Ivanhoe Atlantic. The corporate is pursuing an formidable rail-and-port system in Liberia and has reportedly acquired constructive indicators from American officers.
The undertaking may very well be financed partly by the Millennium Problem Company (MCC)—which means U.S. taxpayer funds could also be concerned.
Moolenaar argued that Ivanhoe’s possession construction contains main stakes held by Chinese language state-linked firms, posing what he described as “critical geostrategic dangers” at a time when Washington is making an attempt to scale back dependence on Beijing for world minerals.
Chinese language State Affect on the Middle of the Warning
In response to Moolenaar, firms tied to the Chinese language authorities collectively maintain practically 40% of the fairness in Ivanhoe Mines, a sister firm within the broader Ivanhoe portfolio.
He particularly cited: China CITIC Financial institution Company (CITIC) – wholly owned by China’s Ministry of Finance.
In 2022, the U.S. Federal Communications Fee positioned CITIC-controlled telecom providers on its national-security Lined Checklist, calling them “an unacceptable danger.”
Zijin Mining Group Firm Restricted (Zijin) – one among China’s largest mining conglomerates.
In 2025, Zijin was positioned on the Uyghur Compelled Labor Prevention Act (UFLPA) Entity Checklist over allegations of compelled labor in Xinjiang.
“These intertwined possession stakes display how the CCP makes use of oblique, minority-share investments in international mining companies to advance world dominance in mineral provide chains,” Moolenaar wrote. He described the technique as a part of Beijing’s long-standing “Two Markets, Two Assets” doctrine.
Why Washington Is Fearful
The letter underscores rising U.S. unease over main African infrastructure offers—significantly those who have an effect on minerals akin to iron ore, lithium, gold, and rare-earth components.
Liberia’s proposed rail and port hall goals to unlock mineral exports from the nation’s inside and serve neighboring Guinea. Its scale and placement make it a strategic geopolitical asset.
Moolenaar urged Secretary Rubio to rethink any U.S. authorities backing for the initiative till the implications of Chinese language-linked possession are absolutely examined.
Ivanhoe’s Construction and Growth
Ivanhoe Atlantic operates inside the broader Ivanhoe Mining portfolio, a multinational conglomerate identified for main copper, nickel, and platinum tasks. Regardless of advertising itself as a Western-led entity, a good portion of its monetary energy comes from Chinese language state-linked buyers.
Analysts argue that the 40% fairness held by CITIC and Zijin in Ivanhoe Mines provides Beijing oblique however significant affect over all the Ivanhoe ecosystem.
The Liberia Rail Mission: A Excessive-Stakes Deal
In July, Liberia and Ivanhoe signed the Concession and Entry Settlement estimated at US$1.8 billion to construct and management a multibillion-dollar rail and port hall supposed to maneuver iron ore and different minerals from Liberia and Guinea to world markets.
Backers argue the undertaking will help Liberia’s multi-user rail coverage, draw new worldwide funding, increase regional commerce and create jobs and open new financial corridors
Nevertheless, the undertaking’s potential reliance on MCC financing has positioned it beneath heightened congressional scrutiny.
Combined Reactions Again House
In Liberia, debate over the Ivanhoe settlement continues to accentuate. Senator Nya D. Twayen Jr. has overtly rejected present type of the deal. In a press release, he stated his workplace accomplished a complete evaluate of the Ivanhoe concession—alongside the ORANTO Petroleum settlement and a pending ArcelorMittal association—and located the Ivanhoe deal scored simply 77% compliance, far under his 85% threshold for approval.
He cited a number of issues, together with paving the Nimba–Guinea haulage hall. Twayen insists the route have to be absolutely paved, not left as dusty laterite.
- US$37 million advance fee: The senator warned that Liberia should not be held liable to repay this quantity resulting from legislative delays.
- Rail operations framework: He demanded a transparent, collectively agreed governance framework involving Liberia, Ivanhoe, and ArcelorMittal.
- Neighborhood Improvement Fund (CDF): Twayen known as for stricter oversight and insisted the fund stay beneath direct authorities and neighborhood management.
“Effort has been made, however effort isn’t sufficient when the welfare of our individuals is at stake,” he wrote. “We won’t endorse any settlement that doesn’t absolutely meet required requirements.”
Senate Inquiry Postponed
In the meantime, the Liberian Senate on Monday suspended its public inquiry into the Ivanhoe Atlantic concession after Finance Minister Augustine Ngafuan and Justice Minister Oswald Tweh failed to seem.
The Senate Joint Committee on Transport, Lands, Mines & Vitality, Pure Assets and Concessions was anticipated to look at whether or not Liberia complied with the Implementation Settlement between Liberia and Guinea, the governing instrument for all cross-border rail and port entry.
The settlement outlines a strict two-step course of together with request for Eligibility vetted by Guinea and request for Entry reviewed by Liberia.
It additionally established a joint Monitoring Committee, an Inter-Ministerial Committee, and a Technical Secretariat chargeable for creating a typical entry settlement template—designed to forestall unilateral motion by both nation.
What’s Subsequent?
With stress constructing from Washington and critical issues rising in Monrovia, all eyes are actually on the Liberian Legislature. The central query stays: Will the Legislature ratify or reject the Ivanhoe concession?
