GoL Stands Accused of Ignoring ‘Plait New Mat from Old Mat’ Adage -Writer Zooms in on HPX, ArcelorMittal Railway Brouhaha   

MONROVIA – In his latest article tagged, ‘Plait the New Mat on the Old One: How Old Age Liberian Parable Plays into Ongoing Rail Discussions,’ a concerned Liberian has explored the intricacies of the lone railway which the Liberian government is attempting to double deal.

In Liberia, there is a well-known parable: “It is on the old mat that you plait the new one.” This simple wisdom carries profound meaning, especially in national decision-making. It reminds us that progress is best built upon a strong foundation, not by abandoning what is already established.

As the Government of Liberia (GoL) deliberates the Third Amendment to ArcelorMittal Liberia’s (AML) Mineral Development Agreement (MDA), this parable holds deep relevance. AML, the company that revived Liberia’s iron ore industry after years of war and neglect, has laid the groundwork for Liberia’s mining sector. Now, as new players like High Power Exploration (HPX) seek access to Liberia’s infrastructure, the government must decide: Should it build upon AML’s foundation or risk tearing apart the old mat before a new one is even woven?

ArcelorMittal: The Old Mat that Sustained Liberia’s Mining Industry

In 2005, when Liberia was emerging from civil war, the country’s once-thriving mining industry was in ruins. The railways were abandoned, ports were crumbling, and communities that once thrived from mining activities were left in poverty. No company was willing to take the risk of investing in such an uncertain climate—except ArcelorMittal.

AML singlehandedly rebuilt the Yekepa-Buchanan railway, investing hundreds of millions of dollars in its rehabilitation. It revived the Buchanan Port, enabling iron ore exports and maritime trade. It directly employs over 3,500 Liberians and has committed to creating 2,000 more jobs under its expansion plan. It has invested $3.5 billion in Liberia, with all operations, taxes, and benefits directly linked to the country’s economy.

For nearly two decades, AML has been the foundation of Liberia’s mining sector. It has proven its commitment to Liberia, even during times of crisis, such as the Ebola outbreak and the 2015 commodity price crash, when many other companies fled the region.

HPX: The New Mat Without a Foundation

Now, a new player—HPX, a company whose investments are in Guinea, not Liberia—is demanding priority access to Liberia’s railway and port. HPX seeks to export Guinean iron ore through Liberia, arguing that the infrastructure should be open for their use.

Unlike AML, which has invested in and maintained Liberia’s rail and port infrastructure, HPX has contributed nothing to Liberia’s development. Yet, the company wants the government to grant it access while reducing AML’s role as the railway operator.

This is where the parable becomes clear. You do not start weaving a new mat on thin air—you must place it on the old mat for support. If you push aside the old mat before the new one is ready, you risk ending up with nothing to sit on.

The Risks of Disrupting AML’s Expansion

If Liberia fails to secure AML’s expansion deal and instead prioritizes foreign companies like HPX, the country risks losing investor confidence. If Liberia allows a foreign competitor to dictate terms over an established investor, it sends a dangerous message to other potential investors: Your investments in Liberia are not safe. Companies will think twice before putting their money into Liberia, fearing that their agreements might be overturned in favor of new entrants with political backing.

Delaying AML’s expansion will also slow down Liberia’s infrastructure growth. AML has committed $800 million toward expanding Liberia’s rail and port capacity as part of its Phase II expansion. If AML’s role is weakened, the expansion could stall, leaving Liberia with outdated infrastructure that cannot handle increased mining output. HPX, on the other hand, has no obligation to invest in expanding Liberia’s infrastructure.

By prioritizing HPX’s demands over AML’s expansion, Liberia would also miss out on key economic opportunities. AML’s expansion will increase Liberia’s iron ore production from 5 million metric tons per annum (mtpa) to 20 mtpa, quadrupling revenues. The project will contribute over $3 billion in direct government revenue, with the potential to reach $4 billion if iron ore prices remain high. AML has pledged continued payments to the County Social Development Fund (CSDF), ensuring funds for local development in Nimba, Grand Bassa, and Bong Counties.

By prioritizing AML’s expansion, Liberia secures long-term economic benefits, infrastructure growth, and job creation for its citizens.

Honor the Old Mat While Weaving the New

The decision before Liberia’s government is clear. AML has been the pillar of Liberia’s mining industry, proving its reliability and commitment. The company has not just extracted resources but invested in Liberia’s future.

On the other hand, HPX is a new player, seeking to benefit from Liberia’s infrastructure without contributing to its development. If the government abandons its trusted partner in favor of an uncertain newcomer, it risks unraveling years of progress.

As Liberia moves forward, let us remember the wisdom of our ancestors: “You plait the new mat on the old one.” Let us ensure that any future mining agreements build upon the strong foundation already laid by ArcelorMittal. This is not just about business—it is about securing Liberia’s economic future for generations to come.