Over the weekend the Vice President of the Republic, Jeremiah K. Koung, and his entourage paid a surprise visit to the Bea Mountain Mining Company (BMMC) in Grand Cape Mount County, with officials of the company making startling revelation about its monthly gold intake, which has sparked a national debate.
According to officials of the company, BMMC produces about 900 kilograms of gold every month, with a global market value of US$153,227 per kilogram. This means the company generates approximately US$137,904,300 in cash value per month. Multiplying this by the twelve months of the year, the company makes approximately US$1,654,851,600.
This disclosure has raised concerns regarding the company’s huge financial intake but little impact on the county in which it operates, which is among the least developed in terms of infrastructure and poverty-stricken. Interestingly, the revelation was made by officials of the company, whom critics argued understated their revenue.
According to information, out of the reported annual revenue of the company, the Liberian government receives roughly US$48.6 million in royalties, while the company keeps the balance.
During Vice President Koung’s visit, the company also announced plans to expand its operations. Officials say they intend to increase ore processing from 4 million metric tons to 8 million metric tons annually, which could significantly boost production.
However, observers are beginning to wonder whether or not Liberia is being coerced into the mineral development agreement with BMMC as perceived with other multilateral companies like HPX, noting that it does not make sense for the government to sign such an agreement that depletes the nation of its natural resources without any tangibles in return.
They claimed that the agreement gives BMMC all the privileges and advantages, including polluting waters, extracting other minerals, and paying a minimum fee in royalties. According to them, there is not any visible benefit from the Turkish billionaire or his country, Turkey, or even the country from which he operates, England. This, they say, only points to the claim that there are bigger hands behind the deal, with some higher-ups in government allegedly benefiting from the meager kickbacks and crumbs.
They noted that the company has secured an additional 25 years, and so the government do not have much to do except to ratify portions of the agreement that will bring relief to the residents of the county.
A lead civil society activist and Executive Director of NAYMOTE-Liberia, Eddie Jarwolo, noted that it is painful to watch state resources taken while ordinary people struggle every day. According to him, many now see Bea Mountain as operating under the protection of powerful forces, with whispers that some officials and security actors may be benefiting behind closed doors.
Jarwolo argued that people are losing trust in leaders who are supposed to protect the nation but may instead be protecting their own interests. “This hurts because Liberia belongs to all of us not a few. One day, the frustration of the people will turn into action. Citizens will stand up, raise their voices, and demand what is rightfully theirs. That day will come,” Jarwolo observed.
Also, Montserrado County Senator, Abrahim Darius Dillon, stated that in 2023, four senators: Darius Dillon, Nyonblee Karnga-Lawrence, Jonathan Charles Sogbie and Steve Zargo, stood their ground and voted against extending Bea Mountain Concession (25 years) based on some of the very discovery and or exposure being spoken about today.
According to Senator Dillon, even construction of modern medical facilities for workers and residents of the concession areas were grossly ignored and neglected.
“But when we asked the hard questions, we were branded as ‘enemy of the state’ at that time. Well…we now have the authority and power in our hands (as the current government) to stand up and ‘right the wrongs’. It is now our responsibility to correct and do it better in the national and common interests,” he noted in a Facebook post.
In the same regard, Margibi County Senator and Congress for Democratic Change (CDC) Legislative Caucus Chairman, Nathaniel McGill, has released an Excel spreadsheet, suggesting revenue distribution between the company and the government.
According to Senator McGill, after following recent revelations by Bea Mountain that it is generating approximately one billion dollars from its operations, there has been growing and legitimate concern among Liberians about how much the government is actually benefiting excluding corporate social responsibility contributions.
McGill’s Excel spreadsheet, which he said he found but subject to verification by the Ministry of Finance and the Liberia Revenue Authority (LRA), shows the different types of taxes paid and how the total value is distributed between the government and the company.
The spreadsheet shows that Bea Moutain’s monthly gold intake is 1,000 kilograms, out of which the government collects 3% (30 kilograms) in royalty, with the remaining gold being 970 kilograms. The spreadsheet further shows that BMMC deducts 540 kilograms as AIS Cost of Business, pays 60 kilograms as withholding tax to the Liberia Revenue Authority (LRA) and the National Social Security and Welfare Corporation (NASSCORP), with the net profit dropping to 370 kilograms.
Furthermore, the spreadsheet shows that the company’s 25% corporate tax accounts for 92.5 kilograms of gold, and the profit after tax is 277.5 kilograms.
Out of the remaining 277.5 kilograms, the government and community further take 10% (27.75 kilograms), and the company is left with 249.75 kilograms, on which it pays 5% withholding tax (12.4875 kilograms).
At the end, according to the spreadsheet, BMMC takes 52% of the gold while the government takes 48%.
Senator McGill’s revelation has brought the Boakai administration at odds with questions of transparency and accountability, with the Ministry of Finance and the Liberia Revenue Authority needing to provide answers.
Bea Mountain Mining Corporation operates the New Liberty Gold Mine in Kinjor, Grand Cape Mount County—Liberia’s first and largest commercial gold mine. It is a subsidiary of Avesoro Resources Ltd., controlled by Turkish businessman Murathan Günal of the Mapa Group. The company has been extracting gold in Cape Mount since 2001, when it secured its first concession agreement for gold extraction in Western Liberia.
Bea Mountain’s main Mineral Development Agreement was signed with the Government of Liberia (GOL) in 2013 and was set to expire in 2026. In August 2023, the Liberian Senate voted to amend and extend the MDA by 25 years, to 2051, and the House of Representatives ratified it in September 2023. Under the amended deal, BMMC committed to invest an additional US$520 million across four projects and granted the state 5% free equity, a Community Development Fund, Clan Development Fund, and 50% surface rental fees.
The Liberia Extractive Industries Transparency Initiative released its 16th Report a few months ago, covering January 1 to December 31, 2023. It is the most recent audited record of the extractive sector. The report shows the Government of Liberia received US$152.46 million in extractive sector revenue for 2023.
According to the report, Bea Mountain exported 12,146 kilograms of gold in 2023, valued at US$653.6 million. Company-level disclosures list the value at US$691.25 million. That made BMMC the top exporter among all extractive firms, accounting for 56.3% of total extractive exports, up from 52.38% in 2022. Averaged over 12 months, production was 1,012.17 kg/month.
