The plenary of the Liberian Senate on Tuesday, February 8, 2022 voted “yea and nai” to ratify the third amendment to the Mineral Development Agreement (MDA) between the Government of Liberia (GOL) and ArcelorMittal Liberia limited. Even though the Senate did not concur with the House of Representatives as it relates to the recommendations proffered by the lower house, the upper house voted for the agreement to be ratified, but with its own recommendations, which are different from the ones from the House of Representatives.
The amendment was passed by the House of Representatives in December 2021 and forwarded to the Liberian Senate for its concurrence.
Presiding Officer, Vice President Jewel Howard-Taylor, President of the Liberian Senate, in consultation with President Pro-Tempore, Albert T. Chie, constituted a Conference Committee to work with the House of Representatives to finalize the approved documents that will lead to the ratification of the MDA, since the both houses’ recommendations were different from each others.
Members of the Conference Committee are Senator Augustine S. Chea, Chairman, and Senators Varney Sherman, Nyonblee Kargna-Lawrence, Prince Moye, Simeon Taylor, Numene Bartewka and Jeremiah Koung, members. The committee is expected to report back to plenary on the decision it reached.
Plenary’s decision on Tuesday was predicated upon a report from the Joint Committees on Lands, Mines, Energy, Natural Resources and Environment, Concession and Investment along with the Judiciary recommending the ratification of the agreement though with several recommendations.
With respects to the recommendations, the Joint Committee recommended that an additional US$25 million be provided by ArcelorMittal for the Consolidated Funds at the Central Bank of Liberia (CBL), in addition to the amounts already indicated in the third amendment. “Portion of this amount should be used for the benefit of affected communities, and the other portion for the national budget’s support,” the Senate Joint Committee recommended.
The Joint Committee further recommended that there should be third-party access to the railroad and the port of Buchanan infrastructure. The committee however indicated that, during the implementation of the phases and activities enshrined in the third amendment, the Executive Branch of government should ensure that third parties and any other entity the government approves have unhindered access to the rail and port.
Furthermore, the Joint Committee recommended that various agencies of the Executive Branch properly monitor compliance by ArcelorMittal to the terms of the MDA, and that local businesses are prioritized to supply goods and services to the mining operations, as well as periodic environmental audits conducted and the report published.
Additionally, the Joint Committee recommended that at least 50 percent of professional jobs for Liberians be allocated for professionals from the three affected counties, especially Nimba County, if the required skills can be found in those counties, and that Mittal institutes an effective communication mechanism that will alleviate the information gap between the company and citizens, the Government of Liberia (GOL) as well as the affected counties’ caucuses.
The Joint Committee at the same time recommended that a new regime and strategy for the management of the social development funds allocated to the three affected counties be discussed and implemented so that the host or project-affected communities in the affected counties feel the impact of the mining project.
The Joint Committee further noted in the report that consideration be given by the Government of Liberia (GOL) to the three affected counties in the disbursement of the signature bonus in the 3rd Amendment.
“In view of the findings and associated recommendations indicated, the Joint Committee on Lands, Mines, Energy, Natural Resources and Environment, Concession and Investment, and Judiciary, Human Rights and Claims and Petitions seek the endorsement of plenary of its report and approval of the bill, entitled, ‘Amendment NO.3 to the Mineral Development Agreement amongst the Government of the Republic of Liberia and ArcelorMittal Liberia and ArcelorMittal Holdings A.G.’,” the Joint Committee noted.
