Since 2011, approximately US$300 million has been invested in Liberia by Western Cluster Limited and its parent company, Sesa Goa, a subsidiary of Vedanta Limited. Approximately US$15.5 million has been paid as community development fund contributions.
According to the Western Cluster Liberia press statement, several critical infrastructure projects have been supported or executed by WCL for the public at-large and to ensure the positive impact of its operation in the region.
The press statement further explained that (WCL) is intent on honoring the mineral development agreement (MDA) and its commitments to the Liberian government and the people of Liberia.
The release stated that WCL’s operation in Liberia were suspended due to force majeure situations (the Ebola Virus outbreak and the Covid-19 pandemic), which are valid reasons for the suspension of obligations of the mineral development agreement (MDA).
The release further noted that Western Cluster Limited (WCL), a subsidiary of Sesa Goa, a Vedanta group company engaged in iron ore mining in Western Liberia, has reiterated its commitment to contribute to the socio-economic development in the region through sustainable business operation and community and infrastructure development initiatives.
The press statement intimated that WCL is also working on generating direct and indirect employment opportunities for the locals, across its core and allied business functions and generating collateral investment opportunities for Liberians. Since 2011, WCL has invested approximately US$300 million in the country, including payment for the concession rights; US$15.5 million payment to the Community Development Fund; construction of two major bridges, the Klay Junction Bridge and the Gui Town Bridge; upgrading and maintaining the Tubmanburg-to-St. Paul River Bridge Road; and several other communities and infrastructure development initiatives.
According to the release, Vedanta Limited is a multi-billion-dollar mineral resource company and its operations are spread in several countries. The operations of Vedanta Limited are strictly consistent with fundamental principles of good corporate governance with utmost focus on inclusive growth. In August 2011 WCL entered into a mineral development agreement with the Liberian government for the iron ore mine in and about Tubmanburg, Bomi County, the iron ore mine close to Mano River Congo in Cape Mount, and the iron ore deposit in Bea Mountain, also in Cape Mount. After submitting its feasibility study, WCL applied for Class A Mining License to start operation at the Bomi mines, but that permission was not granted before the 2014 Ebola viral outbreak.
In furtherance, the release added that WCL also requested for road permit to start the transport of iron ore from the Bomi mines, as provided by its mineral development agreement, but that permit was not granted before the 2014 Ebola viral outbreak, also, as provided by its mineral development agreement (MDA), WCL obtained and paid for a 44-acre tract of land at the Free Port for storage of its iron ore before shipment. However, the Ebola viral outbreak suspended the operation of WCL in Liberia and the Covid-19 pandemic caused the extension of that suspension.
The statement pointed out that In 2022 WCL sought to resume its operation and to facilitate its resumption of operation a memorandum of understanding (MOU) was executed between WCL and the Liberian government, pending the negotiation of an amendment to the mineral development agreement (MDA).
The release said that the mineral development agreement (MDA) provides for its amendment due to profound change in circumstances. The amendment will therefore consider all the profound changes, which have occurred since the mineral development agreement was signed in August 2011.
“Also pursuant to the MOU, another payment of US$5 million was made for community development for Cape Mount County, Gbarpolu County and Bomi County. And further pursuant to the MOU, the road permit was granted by the Ministry of Public Works and the Class A Mining License was granted by the Ministry of Mines and Energy after a second and more contemporary review of the feasibility study. It should be acknowledged that the mineral development agreement (MDA) provides for suspension of obligations where there is a force majeure situation,” the release further added.
However, the press statement explained that the Ebola viral outbreak and the Covid-19 pandemic were forced majeure situations, during which the Liberian government declared a state of emergency. Those force majeure situations, which made it impossible for WCL to operate, necessitated the suspension of its operations in Liberia.
“Vedanta Limited and its subsidiary, WCL, are committed to working with the Liberian government and its people for the mutual benefit of all sides, and we affirm our commitment to work within the framework of the original mineral development agreement (MDA), its amendments and any other rule and regulation, which relates to our operations in Liberia. We wish to also assure the Liberian government and people of our commitment to comply with and abide by all applicable laws, which control or cover our mining operations, especially the Decent Work Act, so that maximum opportunity will be given to Liberians for training and employment,” the release stated.
