Based on its review, deliberations, and the evidence before it, the Senate Joint Committee on Concession has recommended that a number of amendments be made in Ivanhoe Atlantic’s Concession and Access Agreement before it can be approved by the Liberian Senate.
According to information accessed by the Hot Pepper, the Senate Committee is requesting that the agreement provides that the 25-mile heavy-haul road from the Guinea–Liberia border to Tokadeh shall be fully paved prior to the commencement of any iron ore haulage, and that it should provide that the social contributions to affected communities shall be structured so that Ivanhoe is not directly involved in the implementation of community projects—that the counties and affected communities be the only parties to implement.
The Committee is also demanding that the agreement explicitly requires Ivanhoe to construct the rail line from the Guinean mine to the Tokadeh rail connection within two (2) years after the start of commercial production, consistent with the feasibility study, as indicated by the Executive. Also, upon ratification of the agreement, the US$37 million paid by Ivanhoe shall be deemed a non-refundable signature bonus and not a loan or advance. Furthermore, the Senate is requesting the Government of Liberia to consider increasing the access fee from the current range of US$1.95–US$1.55 per ton to a range of US$3.00–US$2.00 per ton.
Most importantly, the Senate Joint Committee has underscored that the agreement clearly include the termination of Ivanhoe’s agreement if the Guinean government cannot approve the transshipment of its iron ore through Liberia within five years.
The Joint Committee further recommended that Clause 16.1(d)(ii) be amended to clearly ensure that references to a National Rail Authority or an “NRA Act” do not constrain the Constitutional authority of the National Legislature, and that any decision to establish such an authority shall be made solely through separate legislative enactment, without giving rise to any contractual default or liability under the Agreement.
