Liberia is on the brink of reclaiming its position as a dominant player in Africa’s iron ore production, thanks to a potentially game changing agreement with global steel giant ArcelorMittal.
Industrial analysts suggest that if the vital mineral development deal is finalized, Liberia could rise to sit alongside South Africa as a leading iron ore producer on the continent.
Before the civil war in 1989, Liberia was the largest producer of iron ore in Africa. Currently, it ranks as a significant producer and exporter of iron ore in West Africa.
The country has the capacity to produce approximately 5 million tonnes of iron ore annually, primarily from ArcelorMittal’s existing operations.
However, this could dramatically change with the proposed Phase Two expansion project under a new mineral development agreement (MDA).
The Phase Two expansion project represents a more than $1.2 billion commitment from ArcelorMittal, aimed at tripling Liberia’s production capacity from 5 million tonnes to an estimated15-30 million tonnes annually.
This substantial increase would firmly position Liberia as one of Africa’s top iron ore producers, with projections suggesting it could be the second-largest producer on the continent, trailing only behind South Africa.
According to recent statistics, South Africa is currently the largest iron ore producer in Africa, yielding about 77 million tonnes in 2021 alone, with major contributions from mining companies like Kumba Iron Ore.
With Liberia’s potential output, the shift in the regional landscape of iron ore production could significantly alter market dynamics, attracting further investment and trade opportunities.
The Phase Two project is also expected to generate thousands of jobs during both the construction and operational phases.
Major employment opportunities will emerge, bolstering local economies in Nimba, Bong, and Grand Bassa counties. Increased economic activity will lead to enhanced investments in critical sectors such as healthcare, education, and infrastructure, ultimately improving living standards for many Liberians.
Moreover, enhanced revenue from taxes and royalties will empower the Liberian government to address vital national priorities, driving broader economic progress and stability.
ArcelorMittal has already established itself as a reliable corporate partner for Liberia, having committed over $800 million in reconstructing the country’s railways and significant amounts in upgrading port infrastructure to post-war standards.
These investments have not only facilitated iron ore exportation but have also laid the groundwork for sustainable development and integration into the global supply chain for iron ore.
For Liberia to fully realize this potential and confirm its position as a leading iron ore producer, timely approval of the new MDA is critical. Stakeholders believe this agreement will reinforce Liberia’s attractiveness as a mining destination, bolstering confidence among foreign investors and enhancing its reputation on the global stage.