Liberia’s Government Directs AML to Allow Ivanhoe Atlantic’s…

The Liberian Government has requested ArcelorMittal Liberia to permit Ivanhoe Atlantic’s Environmental and Social Impact Assessment along the Yekepa-Buchanan railway. This marks a decisive move to implement a multiuser rail policy, promoting economic benefits and regulatory compliance. The ESIA is vital for assessing community, environmental, and safety impacts, and represents a significant step toward expanding access for multiple companies in Liberia’s mining sector.

The Government of Liberia has formally requested that ArcelorMittal Liberia (AML) grant access to Ivanhoe Atlantic for an Environmental and Social Impact Assessment (ESIA) along the Yekepa-Buchanan railway. This request, communicated through letters from the Ministry of Mines and Energy and the Ministry of Transport, marks a significant action towards the implementation of Liberia’s multiuser rail policy, which aims to enhance economic benefits and ensure regulatory compliance.

The letters to AML CEO Michiel van der Merwe direct the facilitation of the ESIA assessment scheduled for March 17–21, 2025. Citing the 2005 Mineral Development Agreement (MDA), the Ministry of Mines and Energy noted that as a licensed entity in Liberia, Ivanhoe Atlantic must be afforded the opportunity to carry out the ESIA as part of its due diligence for upcoming mining operations.

Echoing this, the Ministry of Transport affirmed that the Environmental Protection Agency (EPA) requires the ESIA as a necessary step for Ivanhoe Atlantic’s initiatives. Additionally, the Ministry of Transport assigned Mr. Daniel Kpehe Bolay to oversee the ESIA process, assuring that it would not interfere with AML’s current operations.

Historical context reveals that AML has exclusively controlled the Yekepa-Buchanan railway, essential for iron ore exports, as stipulated in its MDA. However, the government’s adoption of a multiuser rail policy under Executive Order 136 will now permit access to multiple companies, thereby promoting revenue generation.

This request to AML signifies a pivotal move from discussions to actionable steps regarding a future multiuser railway. With Ivanhoe Atlantic expected to transport 30 million tonnes of iron ore annually, this development signals Liberia’s commitment to expanding its rail infrastructure availability.

An ESIA is crucial for evaluating the potential impacts of large-scale projects, addressing environmental, social, and economic factors. In the mining and rail transport context, the ESIA will explore community effects, environmental risks including pollution and biodiversity threats, and necessary safety measures for rail infrastructure.

For surrounding communities along the railway, the ESIA represents an opportunity for economic development, unlike the limited benefits provided by AML’s operations. The implementation of a multiuser rail system could thus enhance job creation and infrastructure improvements.

Despite AML’s assertion of exclusive control over the railway, it faces legal challenges in obstructing the ESIA. The existing MDA stipulates that AML cannot prevent necessary regulatory studies, emphasizing the government’s authority to regulate rail access. The indication from the previous Minister of Justice supports the government’s sovereign right to manage rail infrastructure.

By pursuing the ESIA, Liberia demonstrates its resolve to enforce national infrastructure policies without waiting for AML’s approval. This proactive approach could precede further actions, such as engaging independent rail operators.

As Liberia seeks international investments for its iron ore, AML’s ongoing monopoly has been a barrier for potential investors. The current movement towards an ESIA for Ivanhoe Atlantic could inspire greater confidence among investors regarding the government’s commitment to equitable rail access, possibly unlocking significant capital flows.

Going forward, AML must choose whether to comply with the government’s directives or resist, which could escalate tensions with policymakers. Meanwhile, Ivanhoe Atlantic is set to initiate feasibility studies for new rail projects, indicating a shift towards diversification in rail usage.

In conclusion, Liberia’s initiative to advance the ESIA for Ivanhoe Atlantic represents a critical milestone in its economic development journey. It showcases the government’s commitment to a multiuser rail system that benefits various stakeholders, reflecting substantial progress toward a competitive business environment in Liberia.

The Government of Liberia’s request for ArcelorMittal Liberia to allow Ivanhoe Atlantic access for an Environmental and Social Impact Assessment is a transformative step toward implementing a multiuser rail policy. This initiative not only signifies a break from past monopolistic practices but also commits to fostering economic growth and infrastructure development that will benefit multiple stakeholders, paving the way for an equitable and competitive mining sector in Liberia.

Original Source: www.liberianobserver.com