AMDA Scrutinized-Hearing Details $3.5bn Investment Reality

MONROVIA – Liberia’s National Legislature this week turned its attention from political rhetoric to balance-sheet reality as lawmakers subjected the Third Amendment to the Mineral Development Agreement with ArcelorMittal Liberia to detailed public scrutiny. At the center of the hearings was a core question legislators repeatedly returned to: how to govern an investment that is already embedded in Liberia’s economic landscape. With witnesses presenting financial breakdowns, infrastructure inventories, and revenue projections, the hearings revealed that the proposed amendment is less about approving future promises than aligning law with operational facts on the ground. What emerged was a record-driven examination of sunk capital, national assets, and long-term fiscal implications—placing lawmakers in the role of custodians rather than negotiators of an already materialized investment. THE ANALYST reports.

During a public hearing conducted by the National Legislature of Liberia, lawmakers received detailed submissions outlining the scope, scale, and legal implications of the Third Amendment to the Mineral Development Agreement (AMDA) between the Government of Liberia and ArcelorMittal Liberia.

According to documentation and testimony placed before the hearing, the AMDA governs an estimated US$3.5 billion investment already made in Liberia—one of the largest single private-sector investments in the country’s history. Presenters emphasized that the amendment does not authorize speculative capital, but instead seeks to consolidate and legally align investments that are fully deployed and operational.

Lawmakers were informed that the investment unfolded in two distinct phases. According to documentations, phase One, valued at approximately US$1.7 billion, was executed prior to 2014 but suffered major disruptions due to the Ebola outbreak and a global collapse in iron ore prices.

Phase Two, which commenced in 2021, represents an additional US$1.8 billion and is fully funded, actively implemented, and supporting expanded production.

Evidence submitted to the Legislature detailed several tangible national assets developed under the investment. These include the full rehabilitation of the 241-kilometer Tokadeh–Buchanan railway, now upgraded with steel sleepers and expanded to handle 30 million tons per annum.

Officials told lawmakers the rail line now functions as national infrastructure capable of supporting mining, agriculture, and other export sectors, as well as potential passenger services.

The hearing was also briefed on the construction of a modern concentrator facility capable of producing approximately 20 million tons per annum of higher-grade iron ore, increasing product value and royalty potential.

Environmental safeguards were addressed through documentation on a modern tailings storage facility designed to meet international environmental standards.

In the energy sector, submissions referenced a 100-megawatt Heavy Fuel Oil power plant constructed to support industrial operations, which presenters noted could offer future opportunities for grid integration or industrial clustering.

Lawmakers further reviewed upgrades to the Port of Buchanan, including dredging, berth expansion, deepened channels, and modern ship loaders. According to the hearing record, these improvements now position the port to handle up to 30 million tons per annum in exports, transforming it into a strategic national export hub.

Employment data presented during the hearing indicated that more than 6,000 jobs were created during construction, with 3,500 direct full-time positions expected at full operations and an estimated 10,000 indirect jobs across logistics and service sectors.

On fiscal matters, presenters outlined projected annual government receipts of approximately US$160–170 million, derived from royalties, income and withholding taxes, community development contributions, and statutory fees. Lawmakers were told these revenues are production-linked and scale with output rather than being fixed projections.

The necessity of ratifying the Third Amendment was framed during the hearing as a legal alignment exercise. Submissions argued that without consolidation of previous amendments into a coherent framework, Liberia risks legal fragmentation, operational uncertainty, and potential disruption to revenue flows.

Responding to concerns raised during the hearing about sovereignty, presenters emphasized that the Government of Liberia retains ownership of land, rail, and port assets, along with full regulatory authority over taxation, standards, and oversight.

The AMDA, they noted, operates alongside modern rail governance principles designed to ensure non-discriminatory access under state supervision.

As the hearing concluded, lawmakers indicated that their deliberations would focus on whether ratification best secures Liberia’s economic interests, protects existing national assets, and provides long-term revenue certainty—issues expected to guide the Legislature’s final decision on the Third Amendment.