By: Laymah Kollie
Monrovia — Senator Dabah M. Varpilah of Grand Cape Mount County has formally requested the Liberian Senate to launch an immediate and comprehensive review of the Mineral Development Agreement (MDA) between the Government of Liberia and the Bea Mountain Mining Corporation (BMMC), arguing that the current arrangement no longer reflects the country’s economic realities.
The communication comes after Vice President Jeremiah Kpan-Koung visit to Cape Mount over the weekend to assess Bea Mountain Mining Operations. During the visit, VP Koung inquired about the quantity of gold the company gets from its mining site per month. The company’s official informed Vice President Koung that it generates about 900 kilograms of gold per month, value at $137.4 million or $1.65 billion annually. The announcement sparked public relations attributing to the poor living conditions of residents and insignificant infrastructure construction by Bea Mountain in the area.
However, in a communication addressed to Senate President Pro Tempore Nyonblee Karnga Lawrence, Varpilah said BMMC’s operations should serve as a pillar of Liberia’s ARREST Agenda and a source of sustainable prosperity, but insisted that the agreement is increasingly disconnected from present-day fiscal and social conditions.
She urged the Senate to mandate a specialized Concession Review Committee to bring BMMC back to the table for renegotiation in the interest of what she described as a fairer deal for the Liberian people.
The senator grounded her request on four main points, beginning with the need for stronger fiscal returns from the country’s gold sector. She argued that Liberia’s current 3 percent fixed royalty on gold is outdated, especially at a time when global gold prices have risen sharply.
Madam Varpilah also pointed to neighboring countries such as Mali, Burkina Faso and Côte d’Ivoire, which she said have adopted sliding-scale royalty systems as high as 11 percent.
Varpilah further faulted the 2023 First Amendment to BMMC’s agreement, noting that it granted a 25-year extension without any upfront payment. She Contrasted that arrangement with the ArcelorMittal amendment, which included a reported US$200 million signature bonus, saying the BMMC deal represented a missed opportunity to secure immediate fiscal space for national development.
On community and environmental issues, the senator said host communities remain in poor and unacceptable conditions despite years of extraction, while the existing clan development funds amount to less than 0.05 percent of the extracted mineral value. She also referenced the 2022 chemical spill and the relocation of residents, saying the matters should be addressed through stronger liability provisions and a substantial reclamation bond.
The communication also invoked legal grounds for review, citing Section 36 of the MDA, which allows a periodic five-year review where there are substantial changes in circumstances. Varpilah argued that higher gold prices and the growing push for transparency amount to such a change.
She said Liberia’s Legislature has both the authority and the duty to adjust concession terms in the public interest and for national security.
The senator’s request comes as lawmakers continue to scrutinize major concession agreements across the country. He referenced earlier Senate concerns about other deals, including those involving the Liberia Traffic Management Incorporated and other concessions, saying BMMC should receive similarly urgent legislative attention.
Meanwhile, the communication was received by plenary of the Senate and sent to the Committees on Concession, Judiciary, Human Rights, Claims and Petitions, alongside Ways, Means and Finance for review to report back to plenary in a short period of time for appropriate action.
