ArcelorMittal Liberia has warned of legal action if the Government of Liberia proceeds with a plan granting Ivanhoe Atlantic access to the railway system, arguing it violates existing agreements. The government is determined to establish a multiuser rail system to enhance economic opportunities, despite AML’s opposition. Legal opinions reinforce the government’s stance, emphasizing sovereignty and economic strategy in rail access negotiations.
The ongoing dispute regarding Liberia’s railway infrastructure has escalated, as ArcelorMittal Liberia (AML) has formally indicated to the Government of Liberia (GOL) its intent to pursue legal action if the proposed agreement, which allows Ivanhoe Atlantic access to the railway, is enforced. AML claims this plan violates its existing Mineral Development Agreement (MDA). The conflict arises in the context of Liberia’s Executive Order 136, which aims to enable multiuser access to the Yekepa-Buchanan railway, thereby diminishing AML’s monopolistic control upon the MDA’s expiry in 2030. This policy is seen as a strategy to attract investment and generate substantial revenue by permitting various mining companies, including Ivanhoe Atlantic, to utilize the infrastructure for iron ore transportation.
AML asserts that granting Ivanhoe Atlantic rail capacity contradicts its rights under the MDA and undermines its operational capacity. The company emphasizes its concerns regarding the potential allowance for Ivanhoe to construct additional infrastructure, claiming it violates AML’s right of first option. Furthermore, AML has raised objections to the government’s plans for transitioning to an independent rail operator during or before 2030, arguing that this would invalidate its contractual rights. The company asserts its significant investments and warns that losing its exclusive control could negatively impact its interests and plans.
In response to AML’s threats, the GOL remains resolute in pursuing the multiuser rail policy. Minister of Mines and Energy Wilmot Paye reiterated the government’s commitment to move forward independent of AML’s objections. A legal opinion from former Justice Minister Frank Musah Dean contradicts AML’s claims, establishing that the proposed arrangements align with the existing contractual obligations and asserting the government’s sovereign rights over its infrastructure.
This legal confrontation has broad implications extending beyond AML and Ivanhoe Atlantic—reflecting Liberia’s drive towards economic independence and revitalization. Experts suggest that allowing multiple companies the right to utilize the railway could lead to increased competitiveness, job creation, and enhanced government revenues. The government has initiated steps toward this multiuser framework, preparing national rail standards and selecting an independent operator.
As negotiations with Ivanhoe Atlantic progress, AML’s options remain limited. The company must decide whether to continue its legal struggle to uphold its monopoly or to seek a cooperative resolution in light of the government’s stance and public sentiment favoring the multiuser model. The coming days are critical in determining AML’s future actions and the trajectory of Liberia’s rail infrastructure evolution, as the GOL is actively moving forward with its reform agenda and negotiations.
In conclusion, the situation surrounding Liberia’s railway infrastructure is entering a pivotal phase. ArcelorMittal Liberia’s legal threats signify a strong resistance to the GOL’s plans to implement a multiuser rail system, which promises significant economic benefits for the nation. Despite AML’s claims of rights under the Mineral Development Agreement, the government and legal experts maintain that the push for multiuser access aligns with national interests. Thus, the outcome of this confrontation will not only influence AML’s operational dynamics but also shape the broader landscape of Liberia’s economic development.
Original Source: www.liberianobserver.com
