The new agreement strengthens ArcelorMittal’s long-term mining investments and its commitment to Liberia, while also supporting the government’s objective of opening the Tokadeh–Buchanan railway corridor to multi-user access.
The agreement follows the commissioning of the recently completed iron ore concentrator plant located in Tokadeh, in Liberia’s Nimba County. Equipped with state-of-the-art technology, the facility is considered one of the largest and most advanced iron ore beneficiation plants in Africa. It forms the centerpiece of ArcelorMittal’s USD 1.8 billion expansion project, bringing the company’s total investment in Liberia to USD 3.5 billion — the largest foreign direct investment in the country’s post-war history.
As part of the expansion, significant investments are being made in the railway infrastructure between Tokadeh and Buchanan. The project also includes the construction of a new berth at the Port of Buchanan, upgrades to existing port facilities, and the development of two power plants.
Once the ongoing investments are completed, annual iron ore shipments are expected to increase from approximately 5 million tonnes to 20 million tonnes by 2026. The company also plans to enhance product quality by producing higher-grade, value-added ore. Feasibility studies are underway to further increase production beyond 20 million tonnes per year.
The agreement предусматривает that the railway infrastructure will operate on a multi-user basis. Other companies wishing to use the line will be required to invest in capacity expansion. Should production exceed 20 million tonnes, ArcelorMittal plans to expand the railway capacity to enable transportation of up to 30 million tonnes annually, with this capacity allocated to the company’s operations.
Under the terms of the agreement, ArcelorMittal will pay USD 200 million to the Government of Liberia in exchange for certain rights, including the expansion of mining areas and allocated access to railway capacity.
Commenting on the agreement, President Joseph Boakai stated that ArcelorMittal Liberia is one of the country’s largest private-sector investors and leading employers. He noted that the new agreement will increase production to 20 million tonnes, with the potential to reach 30 million tonnes in the future. He also emphasized that an independently operated railway system is expected to be established from October 2030 onward, which will enhance efficiency and promote multi-user access.
President Boakai added that the agreement will contribute to job creation and support the development of host communities, highlighting it as a reflection of Liberia’s investor-friendly environment and the government’s commitment to supporting business growth.
ArcelorMittal Chairman Lakshmi Mittal described the agreement as a critical milestone for both Liberia and the company. He thanked the government for its support and stated that the partnership would strengthen Liberia’s position in the African mining sector. Following the commissioning of the advanced beneficiation plant, he noted that the company has further strengthened its long-term presence in the country.
Over the past 20 years, ArcelorMittal has made significant contributions to the Liberian economy. The company currently provides direct and indirect employment to approximately 8,000 people and ranks among the country’s largest taxpayers. It has also made notable investments in housing, healthcare, and education projects.
The revised agreement is expected to deliver greater benefits to communities in areas where the company operates and to support Liberia’s long-term economic transformation. Over the next 25 years and beyond, increased production is expected to generate substantial growth in royalties and tax revenues. The planned quadrupling of production and exports by 2026 is also expected to boost GDP, strengthen local supply chains, and create new opportunities for small and medium-sized enterprises.
Comments
No comment yet.