• Liberia and ArcelorMittal Finalize Mineral Development Agreement to 2050
MONROVIA, Liberia – The Government of Liberia and ArcelorMittal have finalized an amended Mineral Development Agreement that extends the company’s mining rights until 2050.
The agreement, ratified by Liberia’s legislature, underpins a $1.8 billion expansion of ArcelorMittal’s iron ore operations in the country.
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What is new?
The Government of the Republic of Liberia and ArcelorMittal signed an amendment to their existing Mineral Development Agreement (MDA), which has now been ratified through the Liberian legislative process. The agreement extends the MDA’s duration to 2050, with an option for an additional 25-year renewal. The new terms solidify ArcelorMittal’s long-term expansion plans in Liberia and address the government’s objective to allow multi-user access to the Tokadeh to Buchanan rail corridor.
Project Expansion
The agreement supports ArcelorMittal’s $1.8 billion expansion project, which is nearing completion and brings the company’s total investment in Liberia to $3.5 billion. A key component of this expansion is a new iron ore concentration facility at Tokadeh in Nimba County, described as one of the most advanced beneficiation plants in Africa. The project also includes significant investment in rail and port infrastructure, such as a new berth at the port in Buchanan and two new power plants.
With these upgrades, ArcelorMittal projects that iron ore shipments will increase from approximately 5 million tonnes per annum (mtpa) to 20 mtpa in 2026. The company is also conducting feasibility studies for a further expansion beyond 20 mtpa.
Infrastructure and Payments
Under the terms of the agreement, ArcelorMittal will pay $200 million to the Government of Liberia for the extension of its mining rights and for reserved access to the railroad capacity it is funding. The agreement establishes a provision for other parties to use the rail infrastructure, provided they invest in its expansion to accommodate their own transport needs. ArcelorMittal is currently expanding the railway to handle up to 30 million tonnes of iron ore annually, which will be reserved for its own use if future production expansions are approved.
About this company
ArcelorMittal is a global steel and mining company and one of the world’s leading steel producers. The company maintains operations in the Americas, Europe, Africa and Asia.
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