The Gungbaya Chiefdom Development Council has issued a stay order on BAO CHICO Mining Company’s operations, citing the company’s failure to meet its obligations under the Mineral Development Agreement (MDA) signed in 2022.
The Gungbaya Chiefdom Development Council is a body located in the Gungbaya Chiefdom, where the company is situated and mining iron. This Chiefdom is the directly affected Chiefdom with several communities and authorities to lead development matters, including monitoring development and concessions in their Chiefdom.
The council demands that the company deliver on promises, including health facilities, housing, jobs, and vocational training.
According to the council Chairman Morris Willie, BAO CHICO has failed to meet key obligations, including:
Section 9.1: Construct, maintain, and support modern health and safety facilities, including relocation plans (failed).
Section 9.3(a): Provide accommodation for contractors and employees with access to basic amenities before commercial production (failed).
Experts say that commercial production refers to the stage when the company starts mining, exporting, and selling iron ore.
Meanwhile, the Council Chairman Morris Willie says that BAO CHICO has exported and sold some iron ore and is still extracting and processing iron ore at two iron ore mining plants at different locations in the Chiefdom.
Section 9.3(b): Ensure access to housing for employees and contractors (failed).
The Council says the company has only managed to construct a concrete fence around Container housing units for the Chinese workers hired by the company.
Section 10(a): Construct and maintain 24-hour health facilities with qualified staff upon starting construction of the mining plant (failed).
The Council says this should have been the first priority for the company to do, but they did not, because the government is not monitoring the implementation of the MDA. This is why they have taken this action, to pressure the government to get involved and ensure everyone benefits.
Section 11.2(a): Operate vocational training facilities and provide job training (failed).
On the other hand, Gungbaya Chiefdom Council Chairman Morris Willie accused the Liberian government of signing the MDA without ensuring proper monitoring of the company’s activities.
”The government signed the agreement and left us to suffer,” he said. “We are not going to let BAO CHICO exploit our resources without benefiting our people.”
The council’s concerns were received by BAO CHICO’s HR, Sylvester Jallah, and Lesion Person, Edwin Darjue, who promised to relay the concerns to the General Manager for redress.
The company’s operations will remain closed until tangible projects benefit the affected communities according to the Gungbaya Chiefdom Development Council.
So far, the company has only made USD 1.5 Million payments for three years of social contributions, and US$240,000 three years of Education Funds, made possible through regular advocacy efforts.
Meanwhile, several citizens we spoke to during our tour around the mine are now demanding construction and operation of health facilities, vocational schools, employment, and housing for contractors and employees.
” No rest for BAO CHICO until our people benefits from our God-given natural resources,” Chairman Willie said. “The MDA is clear, and it is time for the company to deliver on its promises.”
By Henry B. Gboluma, Jr. /Rural Reporters News Network
