Global steel giant ArcelorMittal has reaffirmed its commitment to developing a fully operational multi-user railway system along the Buchanan Corridor in Liberia, aligning with the government’s vision for enhanced infrastructure and economic growth.
This development marks a significant step in establishing a modern railway network aimed at bolstering the region’s mining and shipping capabilities.
In a statement the company said it has never objected to multi-user agreements and has consistently cooperated with the Liberian Government (GoL) in discussions regarding potential third-party users of the rail system.
The integration of third-party user terms and ownership of rail and port infrastructure, initially included in the First Amendment to the AML Mineral Development Agreement (MDA) in 2006, represents a long-standing commitment to fostering collaborative relations with the government and other stakeholders.
The proposed User-Operator structure through the Third Amendment is expected to establish a robust framework for rail operation, drawing on successful models utilized in major global jurisdictions such as Australia and Brazil.
This innovative approach signifies AML’s dedication to enhancing transparency, ensuring non-discriminatory access for all rail operators, and safeguarding both governmental and user interests.
The Rail System Operating Principles (RSOP) agreed upon with the GoL will provide adequate protection and pave the way for transparent rail access,” stated a spokesperson for AML.
“These multi-user principles will be effective immediately, and we are committed to adhering to the standards set by the Rail Authority to promote efficient rail operations.”
Despite previous engagements with other mining entities, such as SMFG and Sable Mining, interest from Liberian mining companies in accessing the rail system has remained limited. AML acknowledges that external factors, including market dynamics and regulatory challenges, have influenced the pace of rail access discussions.
Notably, the company had previously sought to collaborate with BHP on a joint venture involving the Nimba iron ore deposits, but the negotiations fell through due to differing valuations. Additionally, ongoing political considerations, particularly with the Government of Guinea, have complicated rail access negotiations for potential users.
The company remains optimistic about future partnerships, particularly following the 2019 agreement between the Governments of Guinea and Liberia which permits certain Guinean mines to transport ore via Liberian routes, limited to an annual maximum of 5 million tonnes per annum.
