Multinational steel giant ArcelorMittal and Solway Mining Inc., a lesser-known player, are locked in a high-stakes battle over iron ore deposits in Liberia. The dispute has led to protests by local traditional societies, further escalating the tensions.
The crux of the matter lies in a release and settlement agreement signed between the parties.
According to Mr. Boima Morgan, the CEO of Solway Mining, the company had relinquished its exploration rights and handed over assets in a certain area of ArcelorMittal’s concession, in exchange for a promised payment.
However, Morgan claims that the Liberian government and ArcelorMittal have failed to fulfill their end of the bargain, prompting Solway to seek legal recourse.
“Solway has performed fully all its obligations under the aforesaid Release and Settlement Agreement, following which the government proceeded to hand over to ArcelorMittal all of what Solway has released to it.
Notwithstanding, the Government and ArcelorMittal have neglected, refused and failed to abide by its side of the Settlement Agreement to pay the consideration they promised to Solway Mining Inc in spite of repeated demands,” Morgan stated in a strongly worded response.
The dispute has now spilled over into the local community, with traditional societies staging demonstrations at ArcelorMittal’s mining sites in Nimba County. ArcelorMittal has accused Morgan of orchestrating these protests, a claim that he vehemently denies.
“It is reckless and inconceivable to accuse Mr. Boima Morgan of orchestrating the demonstrations over ArcelorMittal Mining Cites by traditional societies of Nimba especially when Mr. Morgan has made no claim to ArceloMittal’s Mining sites where the demonstrations are taking place,” the statement from Morgan’s legal representatives said.
The case is now pending in the Commercial Court of Liberia, with Solway seeking to have the release and settlement agreement cancelled.
Both parties have accused each other of acting in bad faith, and the outcome of this high-stakes dispute could have far-reaching implications for the mining industry in the region.
As the legal battle unfolds, the local communities continue to voice their concerns, adding another layer of complexity to this rapidly evolving situation. The clash of these corporate giants is set to be a closely watched event, with the potential to reshape the future of Liberia’s lucrative iron ore industry.
