Activist and political commentator Henry Costa is warning the Government of Liberia to cancel its “secret” agreement with mining conglomerate HPX or risk being sued by ArcelorMittal in London. “If ArcelorMittal sues the government I will support the company because the Liberian government has no right to sign a third-party agreement with HPX when its deal with the company (ArcelorMittal) still has nine years running” he declared.
According to Mr. Costa, the Government of Liberia decision to sign a “secret rail port user agreement” with mining conglomerate –HPX is “shameful and unacceptable”.
Making the disclosure on the Thursday, 5 May 2022 edition of the “Costa Show”, Henry Costa denounced the government’s decision as a double standard and a clear danger to the county’s investment reputation.
According to him, no responsible government will move ahead to sign a new agreement with a third party for the use of an asset which has been given to another concession by law.
“My people, it is shamefully embarrassing to see what the government has done yet again. Why did they sign a secret agreement with HPX just days after the House rejected ArcelorMittal’s deal and sent it back to the executive for renegotiation? Do you see the trail of events?” he asked.
Costa’s outburst comes as the government of Liberia entered into an unannounced agreement with HPX for the use of Liberia’s rail and port facilities for which details of the agreement with HPX remain unknown.
But according to the talk show host, the government t of Liberia received $US 10 million from HPX to turn its back to ArcelorMittal and by extension violate its own 2013 Mineral Development Agreement with the global steel giant.
“HPX brought the 10 million in the bag from Guinea to Liberia and forced your government to sign that bogus agreement” he informed Liberians.
Last week ArcelorMittal Liberia in an unusual letter called on the government of Liberia to cancel all agreements with third parties in its concession areas, and take no further steps that violate its mining rights in Liberia.
In a letter addressed to the ministers of Finance, Justice, and Mines and Energy, the company listed several bad decisions by the government including its recent agreements with third parties, encroaching on its operations in Liberia
Details of the letter as published by Frontpage Africa suggest that Mittal’s communication to the government comes days after the Managing Director of the National Port Authority, Bill Twehway, asked Mittal to grant access to Notre Dame Investments for entry to AML’s port area.
The company also stressed in strong terms that the conclusion of a framework agreement with HPX constitutes a serious encroachment on its rights under the existing Mineral Development Agreement.
Henry Costa further warned that if the government of Liberia enforces the agreement with HPX, ArcelorMittal will be left with no other option but to sue the government for attrition in London.
“If the ArcelorMittal sues the government I will support the company because the Liberian government has no right to sign a third-party agreement with HPX when its deal with the company still has nine years running” he declared.
Costa described the decision of the government as a clear indication of driving away investors and potentially tarnishing the country’s image to the outside world in the face of poverty, lack of jobs and bad economic conditions.
He wondered why the government of Liberia refused to sign a one billion deal that could bring three thousand news jobs but elect to do business with HPX which has no investment in Liberia but is only interested in using the rail to sell its iron ore reserves in Guinean to another company.
HPX, he disclosed, has no intention to invest in Liberia at all.
“The company called HPX is not interested in mining iron ore in Guinea. All they want is to have fixed transport asset then they can sell the entire iron ore mine in Guinea to another company for billions of dollars,” Costa further disclosed.
He cautioned the Liberian government to be cautious of how it treats the situation of ArcelorMittal to avoid plunging the country into a serious problem at the court of attrition if the government got sued.
Since ArcelorMittal’s communication, no one in the government has reacted so far.
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