We Want Bottom-up Approach in 3rd AML Agreement -Nimba Citizens Say, ‘Listen to Us, and Listen Well’
Get real time updates directly on you device, subscribe now.
By Anthony Q. Jiffan, Jr
MONROVIA – It has been gathered by this paper that ahead of discussion and possible signing of the ArcelorMittal Liberia’s 3rd Expansion Project, or the 3rd Mineral Development Agreement, the citizens from local communities within the operational area of the company are not only bracing themselves for the event, but also want to be factored prominently in the equation.
The citizens expressed the need for the government to adopt a bottom-up approach when negotiating deals that directly affect their communities.
During the meeting, over 70 chiefs, elders, and concerned residents voiced their support for the ratification of AML’s amended Mineral Development Agreement (MDA).
However, they also outlined a series of financial and social demands they want incorporated into the new agreement to ensure the communities benefit directly from the company’s operations.
Historically, one of the main issues between the people and concession companies has been the lack of direct access to funds intended for community development.
According to Liberia’s public financial management law, all payments to the government must be made into consolidated accounts.
As a result, when ArcelorMittal pays its annual development funds, the money goes directly to government accounts in Monrovia, and decisions about its distribution are made there, often leaving the local counties without their fair share.
ArcelorMittal pays $1.5 million to Nimba, $1 million to Grand Bassa, and $500,000 to Bong County annually.
Since its MDA was enacted, the company has contributed more than $48 million to these three counties, but the funds have been distributed through the central government, not directly to the communities.
With the company’s expansion, local residents are now calling for a significant change in this process.
The citizens acknowledged the important role AML plays in Liberia’s economy, recognize that the company has met its financial obligations, but stressed the need for direct access to these funds for local development.
“The government of Liberia will collect $200 million every year from the company under the new agreement,” a statement from the communities read. “That is a significant contribution, and we want to ensure that a portion of that money is used to improve our lives.”
The citizens also demanded an increase in the County Social Development Fund (CSDF), emphasizing that the funds should be allocated in proportion to the volume of iron ore mined as part of the company’s expansion.
One of the most urgent demands was for community development funds to be deposited in a separate account designated solely for local projects, managed by local representatives.
“All the money for community development paid by ArcelorMittal should be placed in a separate account,” one elder insisted. “This way, we can ensure that the funds are used for projects that directly benefit our people.”
In addition, citizens requested that 60% of land-use fees be directed to the impacted communities, asserting that they are the rightful custodians of the land being mined.
“We are the ones most affected by mining operations,” they said. “It is only fair that a significant portion of the land rental fees be allocated directly to us.”
ArcelorMittal’s Liberia Phase II project is poised to be a major milestone for both the company and the region. The project, with a capacity of 15 million tonnes of iron ore concentrate, is progressing steadily and is expected to be commissioned in 2025.
The project includes a state-of-the-art concentrator plant and the expansion of the existing rail and port infrastructure to support the production and shipping of concentrated ore. Phase II operations are ongoing in parallel with construction under the ‘Direct Shipping Ore’ mode.
The project has already created over 3,000 new jobs for Liberians and is set to become a significant asset for the company, further solidifying its long-term investment in Liberia.
Comments are closed.