The Liberia Extractive Industries Transparency Initiatives (LEITI) has released its 15th EITI Report, naming ArcelorMittal Liberia as the top contributor to the government’s revenue in the extractive sector.
Uncovering key insights into the fiscal period from July 1, 2021 to December 31, 2022, the report discloses data from post-COVID reconciliation and highlights ArcelorMittal Liberia as making the highest contribution to the government’s revenue in the extractive sector.
At a press conference on Tuesday in Monrovia, the LEITI multi-stakeholders steering group said ArcelorMittal Liberia successfully contributed a total of US$78 million in government revenue.
Bea Mountain Mining Company and Firestone Liberia Incorporated also made noteworthy contributions of US$37 million and US$17 million, respectively.
This robust financial support from key players like ArcelorMittal Liberia and others underscores the vital role of the extractive sector in bolstering the Liberian economy.
The LEITI report also reveals that the total revenue from the extractive sector during the specified period amounted to US$182.35 million, with ArcelorMittal Liberia Limited contributing a substantial portion of US$78 million.
The 15th EITI Report covers 21 companies across mining, forestry, and agriculture, providing a holistic overview of Liberia’s extractive industries. The report includes detailed information on legal frameworks, fiscal regimes and various aspects of the extractive sector, demonstrating a commitment to transparency.
In addition to financial contributions, the extractive sector played a crucial role in employment, with 12,017 people employed in 2022, representing 0.50% of the country’s labor force. Notably, 21% of these employees were female workers, reflecting strides toward gender inclusivity in the industry.
The report also sheds light on the social and environmental responsibilities of extractive companies, with expenditures totaling US$34 million during the specified period. This includes mandatory and voluntary social spending, as well as environmental expenses, emphasizing a commitment to sustainable practices.
The Multi-Stakeholder Steering Group (MSG) expressed gratitude that, with the 15th EITI Report, Liberia takes a stride towards a more transparent, accountable, and responsible extractive sector, ultimately contributing to the country’s sustainable development.
According to the Liberia Revenue Authority (LRA), ArcelorMittal Liberia has maintained its position as the top contributor in the private sector, making significant contributions to the government’s revenue.
ArcelorMittal Liberia’s substantial contribution of 78 million to government revenue from the extractive sector holds paramount significance for Liberia. This financial infusion plays a pivotal role in addressing critical social problems and fostering development within the country.
Firstly, the revenue contributed by ArcelorMittal enhances the government’s capacity to invest in essential public services, such as education and healthcare.
These funds are allocated to improve schools, infrastructure and healthcare facilities, thus directly benefiting the citizens of Liberia. This contributes to the overall well-being and development of the nation.
Secondly, the revenue infusion bolsters efforts to alleviate poverty and promote economic stability by implementing targeted social programs and initiatives that aim to uplift disadvantaged communities, providing them with opportunities for sustainable livelihoods. This, in turn, helps to reduce income inequality and create a more equitable society.
Furthermore, the financial support from ArcelorMittal enables the government to address varied concerns associated with infrastructure and sustainable development.
In essence, ArcelorMittal’s contribution to government revenue is instrumental in fostering socio-economic development, enhancing the quality of life for Liberian citizens, and promoting a more sustainable and inclusive future for the nation.
The collaboration between the private sector and the government demonstrates the potential for extractive industries to play a positive role in addressing societal challenges and driving progress in developing economies like Liberia.