MONROVIA – The Liberian Senate’s overwhelming approval of the Third Amendment to the Mineral Development Agreement (MDA) between the Government of Liberia and ArcelorMittal Liberia marks a defining moment in the country’s long and often contentious relationship with large-scale mining concessions. After years of public criticism over weak benefits, limited Liberian participation, and insufficient community returns, lawmakers say the revised agreement represents a decisive break from the past. The vote reflects growing legislative insistence on stronger national ownership, faster revenue flows, and clearer social and economic dividends from extractive investments. As attention now turns from negotiation to implementation, the amended MDA will be judged not by its text alone, but by whether it delivers measurable improvements in livelihoods, infrastructure, and governance in mining-affected communities, experts contend. The Analyst reports.
The Liberian Senate has overwhelmingly passed the Third Amendment to the Mineral Development Agreement (MDA) between the Government of Liberia and ArcelorMittal Liberia (AML), marking a major milestone in the country’s extractive sector and broader economic development agenda.
The landmark agreement was approved with 20 senators voting in favor and three abstentions, reflecting broad bipartisan support for what lawmakers described as a significantly improved and more people-centered concession framework.
During plenary deliberations, several senators praised the revised agreement for addressing weaknesses in previous arrangements, strengthening government oversight, expanding benefits to local communities, and ensuring greater participation of Liberians in the mining sector.
The passage follows years of negotiations between the Government of Liberia and ArcelorMittal Liberia. Talks began in 2020 and produced an initial agreement in September 2021, which was later rejected by the National Legislature in March 2022 amid concerns over fairness, transparency, and national benefit.
Following four additional years of negotiations, the Executive Branch returned to the Legislature with a revised and improved agreement that lawmakers say better protects Liberia’s interests while preserving a stable and predictable investment environment.
One senator remarked during debate that while the agreement may not be perfect, it represents a strong step forward. He noted that it secures greater value from Liberia’s iron ore resources while encouraging long-term investment and job creation.
At the center of the Third Amendment is a strengthened revenue framework designed to boost government finances and support community development. The agreement guarantees an immediate US$200 million signature bonus, payable within 30 days of the agreement’s effective date, providing a significant injection into the national treasury.
In addition, ArcelorMittal Liberia will contribute US$5 million annually to a Community Development Fund benefiting Nimba, Bong, and Grand Bassa counties, an increase from the previous US$3 million. The fund will be adjusted annually for inflation and used to support education, health, and infrastructure projects in affected communities.
The company will also pay US$200,000 annually as an infrastructure oversight fee to support the National Rail Authority’s monitoring of railroad operations. Mining license fees will increase substantially, reaching US$500,000 per year by 2031, compared to the US$50,000 paid annually for 25 years under the previous arrangement.
Furthermore, the amendment introduces a 4.5 percent monthly royalty on the FOB Buchanan price, replacing the former quarterly payment system and ensuring faster and more predictable revenue flows to government.
A major highlight of the Third Amendment is its strong emphasis on Liberianization of the workforce and management. Under the new agreement, at least 50 percent of management positions must be held by Liberians within one year, rising to 75 percent within five years and 90 percent within ten years.
Within one year, one of the four top executive positions—Chief Executive Officer, Chief Administrative Officer, Chief Financial Officer, or Chief Operating Officer—must be occupied by a Liberian. The agreement also requires absolute preference for qualified Liberians at all levels of employment.
To strengthen local enterprise participation, ArcelorMittal Liberia is required to prioritize Liberian-owned small and medium-sized enterprises for goods and services and to establish a joint committee to support and build the capacity of these businesses.
Lawmakers described these provisions as a turning point in moving Liberians beyond manual labor into leadership, technical, and decision-making roles within the mining sector.
The amendment also places strong emphasis on human capital development. ArcelorMittal will provide US$500,000 annually for training and education, including scholarships for students studying geology and mining engineering, with preference given to youth from affected counties.
A new campus of the ArcelorMittal Liberia Vocational Training Center will be established in Grand Bassa County, while annual financial support will be provided to the University of Liberia’s Mining and Geology Institute and community colleges in Nimba, Bong, and Grand Bassa counties.
Major infrastructure commitments are also included, benefiting both mining operations and public use. These include repairs to the KM 2.5 Bridge and St. John River Bridge, paving of the concession road in Buchanan, and completion of the Sanniquellie-to-Yekepa road pavement.
One of the most transformative provisions is the introduction of a multi-user rail system, ending ArcelorMittal’s exclusive control of the railway. The company will upgrade the rail system to a capacity of 30 million tons per annum and make at least 8 million tons per annum available for approved third-party users.
Under temporary rail rental arrangements, the government will receive 30 percent of net profits, while it will receive 100 percent of access fees from other users, creating new revenue streams and encouraging broader mining development.
Environmental protection also features prominently in the revised agreement. To safeguard water resources, ArcelorMittal is restricted to using rainwater for mining operations and will pay US$100,000 annually to the Liberia Water and Sewer Corporation for water use at its facilities.
Lawmakers and government officials say the agreement sends a strong signal to the international investment community that Liberia is open for business, committed to transparency, and determined to secure fair value from its natural resources.
A senior lawmaker described the Third Amendment as a balanced outcome that protects national interest while sustaining investor confidence, demonstrating that Liberia can negotiate stronger agreements that deliver tangible benefits to its people.
With Senate approval secured, the agreement now moves closer to full enactment, pending final procedural steps. Attention will now shift to implementation, monitoring, and enforcement to ensure that the promised benefits translate into real improvements in the lives of Liberians, particularly in mining-affected communities.
The passage of the Third Amendment to ArcelorMittal Liberia’s MDA marks a new chapter in Liberia’s mining sector, defined by stronger governance, expanded opportunities for local businesses, increased employment, higher revenues, improved infrastructure, and a renewed focus on sustainable development.