On April 12, 2022 Western Cluster Liberia Limited and the Government of Liberia (GOL) signed a memorandum of understanding (MOU) for the company to resume operation in the Bomi Hills Mines after negotiating new terms with respect to their obligations to the government, which had previously caused them to suspend their activities. On April 14, 2022, the National Investment Commission (NIC), then headed by Molewuleh B. Gray as Chairman, communicated the information, including the terms, to then Minister of Justice, Cllr. Frank Musah Dean, Jr., for the government to comply with its side of the bargain for the company to resume function with immediate effect. Unfortunately, the agreement has turned out to be a bad, if not the worst, deal to be signed during the George M. Weah administration, causing the lead negotiator and Senator of Bomi County, Edwin Melvin Snowe, to withdraw from the bargaining.
Western Cluster has had previous engagement with the Liberian government, even though it did not go well for both parties. The company came to Liberia on October 18, 2010 to explore investment opportunities in the iron ore sector in the western region of Liberia. Its mineral development agreement (MDA) with the Government of Liberia (GOL) was ratified by the National Legislature on August 3, 2011, with its principal activities being to prospect, explore, mine and market iron ore and to manage investments in other companies. The company also applied for the importation and exportation of goods and services related to the exploitation and processing of iron ore.
But because the investment climate was not conducive, coupled with the falling of the price of iron ore on the world market as well as the outbreak of the Ebola viral disease in 2013, the company abandoned the contract even though there was a legal agreement subsisting between it and the government for twenty-five (25) years. Ten (10) years later, the company resurfaced, with different owners, partners and headquarters, to reclaim the concession it had abandoned and to begin afresh.
Apparently blinded by the vigor to secure job opportunities for his people or to further enrich himself through unscrupulous means, Senator Snowe became the lead negotiator for their comeback. Senator Snowe mediated for the waiver of over US$13 million in funds that the company owed the government and people of Bomi County, paying back only US$10 million in two installments.
Apart from the US$10 million, the government relieved Western Cluster of all financial obligations, of all kinds or nature, owed to it, and ensured that the Ministry of Mines and Energy issued the company a Class “A” Mining License as on the date of execution of the MOU, the Ministry of Public Works issued the company a road permit for transportation of the iron ore from Bomi Hills mines to the Freeport of Monrovia for a period of not less than three (3) years, assisted the company by interceding with the management of the National Port Authority (NPA) to execute a lease agreement for the company to use the Liberia Mining Company (LMC) pier and National Iron Ore Company (NIOC) pier at Freeport and a haulage/storage space of at least six (6) acres of land at the piers, and assisted the company to acquire and lease additional land space (minimum five acres) between the Po River and the St. Paul Bridge. The government also assisted the company in negotiating with China Union (another iron ore producing company in Liberia) for using China Union’s loading equipment facilities at reasonable market price for loading the company’s iron or into vessels berth at the piers of the Freeport or any other such arrangement which will help the company to ship the iron ore from Liberia.
In return, Western Cluster agreed to rehabilitate the road from Bomi Hill mines to the Freeport of Monrovia by repairing the existing potholes. The company also agreed that, once the transportation of ore is started by the company, the newly generated potholes, if any, will also be repaired by the company to maintain usability of the road, providing US$3 million as contribution for the rehabilitation of the corridor between the St. Paul Bridge and the Freeport of Monrovia. For the road from Bomi Hills Mines to the St. Paul River bridge, the company agreed to provide US$1.5 million to a contractor to do the reconditioning of the road.
The parties agreed that the provisions of the MOU supersede all provisions of the agreement which are contrary or in conflict hereto, and that the MOU forms the entire agreement between the parties for the resumption of the company’s operations, with no other agreement or understanding subsisting between the parties.
Regrettably, the Government of Liberia (GOL) has fulfilled its portion of the bargain but Western Cluster, which appears to be the most beneficiary of the deal, is yet to uphold its commitment since June 2022, and is instead destroying the existing infrastructure to ship its ore out of the country.
Hot Pepper’s fact-finding tour to Tubmanburg, Bomi County, revealed that the road from St. Paul’s bridge to Tubmanburg is in complete ruin, and the stretch between St. Paul’s bridge and Freeport is among, if not, the most damaged roads in Monrovia. The both roads appear to be untouched for years. the paper was informed by residents that Western Cluster’s heavy-duty trucks are the main contributor to the road’s damage, but the company is acting dump over its obligations.
Residents of Guie Town, along the Monrovia-Tubmanburg highway disclosed that, a few weeks ago a hired Western Cluster truck ran into a motorcycle carrying three students from the town to Klay, severely injuring the students and the motorcyclist, but the company allegedly deliberately refused to identify with the victims. They said the victims were admitted at the government hospital in Tubmanburg, but were discharged without proper medication.
Also, residents have decried of not feeling the impact of the company’s social corporate responsibility, leaving affected communities undeveloped and the residents without hospitals, schools, safe-drinking water, electricity, paved roads, etc.
Several individuals spoken to in Tubmanburg said they are of the opinion that it is better the county be without a concessionaire than to have a company that is destroying the already existing developed infrastructures without plans. They used the medium to lash at their Senator, Edwin Melvin Snowe, for allegedly interceding on the company’s behalf to enrich himself and leave the county in abject poverty, but warned about an undisclosed uprising against the company to be staged soon. Part 2 Tomorrow.