Skepticism Grows as HPX Pursues Rail Project through Liberia Amid…

High Power Exploration (HPX) faces skepticism over its $5 billion railway project through Liberia to export iron ore from Guinea’s Nimba deposit. Guinea’s new government is reaffirming its policy of resource control, as demonstrated by the development of the Trans-Guinean Railway. Industry experts question the project’s feasibility given existing agreements and the potential economic repercussions for Liberia.

High Power Exploration (HPX), a mining company supported by billionaire Robert Friedland, is facing increasing skepticism regarding its plans to secure rail access through Liberia to export iron ore from Guinea’s Nimba deposit. Analysts and policymakers are questioning the project’s feasibility and intentions, especially in light of Guinea’s long-standing policy requiring mining firms to develop local infrastructure for resource transportation.

For over sixty years, Guinea’s governments have denied permission for iron ore exportation through Liberia, insisting on domestic infrastructure investment. This policy of economic nationalism aims to ensure that Guinea retains control over its mineral wealth, a principle that saw a temporary shift under the previous administration of Alpha Condé, who signed a deal allowing small-scale miners limited use of Liberia’s infrastructure. However, following the military coup in 2021, the new administration appears to be returning to traditional policies.

In 2023, a significant turn of events unfolded as Guinea’s government reached a major agreement with mining giant Rio Tinto and Singapore’s Winning International Group to build the Trans-Guinean Railway. This 650-kilometer railway is expected to connect Guinea’s extensive Simandou iron ore reserves to a new deepwater port in Conakry by late 2025. Analysts assert that this development offers a more economical solution for transporting iron ore rather than HPX’s proposed $5 billion rail project through Liberia.

HPX claims it plans to transport 25 million tonnes of Guinean ore annually through Liberia, citing assurances from Guinean authorities. Yet, the firm has not provided documented proof of these claims when challenged by Liberian officials, leading to accusations of misleading tactics. Activist James Flomoku criticized HPX, stating, “HPX is selling a fantasy,” and expressed concern over the lack of clarity about existing agreements following Guinea’s political changes.

The situation has intensified pressure on Liberian President Joseph Boakai’s administration to reject HPX’s project unless tangible evidence of Guinea’s approval is presented. Civil society organizations caution that the project could become a financial burden for Liberia if Guinea refuses to allow ore transit, recalling past instances where foreign companies failed to deliver on promises.

As Guinea’s Trans-Guinean Railway nears completion, experts insist that the burden to demonstrate project viability lies with HPX. Political analyst Aissata Diallo remarked, “The reset button has been hit in Guinea,” emphasizing the need for HPX to align with the new political landscape or admit the flaw in its proposal. Currently, Liberia awaits further clarity from HPX.

The article discusses the complications faced by High Power Exploration (HPX) regarding its proposed railway project aimed at exporting iron ore via Liberia, particularly in light of Guinea’s historical policies on resource management. It highlights the strategic significance of infrastructure due to the relationship between the nations and recent developments in Guinea’s transportation projects.

In conclusion, HPX’s operations in Liberia are mired in skepticism due to Guinea’s longstanding resource sovereignty policies and the recent establishment of the Trans-Guinean Railway. The mounting pressure on Liberia to reject HPX’s proposal, alongside the absence of confirmed agreements from Guinea’s new regime, calls into question the viability of HPX’s ambitious plans. A clear and credible course of action from HPX is required to navigate this increasingly complex geopolitical landscape.

Original Source: frontpageafricaonline.com