-Legislature Begins Review, Extending the Contract to 2050
By Jerromie S. Walters
Monrovia: The House of Representatives has initiated a review of a major amendment to the ArcelorMittal Mineral Development Agreement (MDA) that would extend the contract to December 20, 2050. The review follows a formal submission of the agreement to the legislature by President Joseph N. Boakai.
On Tuesday, January 13, 2025, President Boakai sent the proposed Third Amendment to the ArcelorMittal MDA to the House of Representatives. He asked lawmakers to review and ratify the agreement, which was signed by the government and the company on December 20, 2025.
The House has assigned the document to three key committees: Concessions & Investment; Mines, Energy, Natural Resources and Environment; and Judiciary. These committees have been given two weeks to examine the details and report back to the full body.
The most significant change in the amendment is the extension of the agreement’s term.
If ratified, the MDA between Liberia and the global steel company will remain in effect until December 20, 2050. The pact also includes a right of renewal at that time. In his written communication to House Speaker Richard Nagbe Koon, President Boakai stated the amendment represents a consolidated version of the original 2005 agreement and all its previous changes. He urged the legislature to approve it. A key feature of the new amendment is a change to rail operations.
It grants the Liberian government the right to establish a multi-user system on the Yekepa-Buchanan rail line, with plans for a government-regulated rail authority by 2030.
The agreement requires ArcelorMittal Liberia to significantly increase its production. The company must ramp up to 15 million tons of iron ore per year by 2027, then to 20 million tons by 2031, with a future path to reach 30 million tons.
The government is set to receive an immediate financial benefit. Upon the legislature’s ratification, ArcelorMittal Liberia will make an upfront payment of US$200 million to the Government of Liberia.
Other financial terms are also improved. The annual mining license fee paid by the company will rise from US$50,000 to US$500,000. The amendment creates a substantial annual commitment for community projects.
ArcelorMittal Liberia will contribute US$5 million per year to a Community Development Fund for areas in Nimba, Bong, and Grand Bassa counties affected by its operations. Specific projects are outlined in the agreement. These include rehabilitating the KM 2.5 bridge and the St. John River Road bridge, paving a key road in Buchanan, and establishing a new Vocational Training Center in that city.
The company faces penalties if it falls behind on these community projects. Annual contributions to the Community Development Fund would increase by US$250,000 to US$500,000 for any delays in the plan.
New employment targets for Liberians are established. Within three years, Liberians must hold 50% of all management positions. Within one year, one of the four top executive officer roles must be held by a Liberian.
The localization plan continues over time. The agreement states that 75% of professional and technical jobs must go to qualified Liberians within five years, rising to 90% within ten years.
Additional commitments include a focus on buying local goods and services. ArcelorMittal Liberia must prioritize local procurement across its mining, rail, and port operations.
The company will also fund education and training. An annual amount of US$500,000 is earmarked for education and skills training programs in Liberia.
President Boakai concluded his letter to the Speaker by stating the amendment aligns with his administration’s ARREST Agenda for development. He described it as an advancement for the country’s economy, infrastructure, and communities.
