I typically refrain from commenting on former employers, but the ongoing public discourse about ArcelorMittal Liberia has compelled me to share my perspective. For context, I spent four productive years with the company, progressing from a mid-level to a management role where I was directly involved in shaping institutional policies. I left at the end of March 2024 and transitioned to the Government of Liberia.
AML, as I know it, is the highest paying private sector employer in Liberia and one of the most competitive in West Africa. I was compensated fairly and was among the highest paid Liberian staff during my tenure.
To ground this conversation in fact, let’s examine the core components of the Mineral Development Agreement or MDA signed between the parties. The original agreement was signed in 2005 by the Bryant Interim Government, granting a 25-year concession for iron ore mining.
A cornerstone of this agreement was the commitment to fully rehabilitate the railroad and the port of Buchanan, national assets that had been severely degraded. It is also important to recall the context; when AML committed to Liberia in 2005, the country was emerging from conflict, and no other major international company was willing to take such a significant risk.
The scale of the challenge was immense as even the 249km rail between Buchanan and Tokadeh was essentially destroyed after the civil war, and the country’s industrial capacity was virtually nonexistent to the extent that the company had to import crushed rocks to begin rehabilitating the rail that is a point of contention today.
AML didn’t just repair it; they undertook a complete reconstruction at a cost of approximately US$800 million, an investment that was naturally factored into the cost of operations.
And to emphasize on why it was reconstructed, I will submit that the railroad was chainsawed and sold as scraps to merchants in neighboring countries. The same was done with the Mt. Coffee hydro in White Plains ( chainsawed and sold as scraps).
Well, back to the MDA of 2005; the agreement also stipulated 3rd party access to the rail infrastructure, granted by the government in consultation with AML, provided it did not disrupt AML’s core operations.
Regarding social contributions, the MDA obligated AML to construct and maintain health facilities within the concession areas. In education, the company was tasked with operating a Technical and Vocational Education and Training institute, providing an annual scholarship fund of US$200,000, and supporting a mining institute at the University of Liberia.
Independent endorsements from the National Bureau of Concessions confirm that AML has met many of these commitments. The company invested over US$1.8 billion to rebuild critical infrastructure, restoring basic services that existed before the war.
However, even this significant investment could not address all the legacy challenges, particularly the vandalism that occurred in Yekepa’s and Buchanan residential areas following the civil war unto the cessation of operations during the Ebola crisis. Beyond its MDA obligations, AML undertook additional projects, such as providing funds to paving the Ganta to Sanniquellie highway, a road that had been abandoned for decades.
Yes, it is understandable that communities feel a sense of nostalgia for Yekepa’s past prosperity. If you were born in Yekepa or visited before the war, the township today looks like an abandoned village. Admittedly, the areas that AML occupies look better than the rest of the township.
But then, the central question is, why is this happening? Simply put, since the civil war, communities have refused to leave the structures left behind by LIMINCO (the company that took over after LAMCO left in 1989).
Residents have been compensated, but they will not leave, and the courts, apparently out of sympathy and fear of reprisal attacks by politicians, are unable to rule on these cases. Hundreds of homes are occupied by people who work for the company, have no affiliation with the company, and have no capacity to renovate them, yet they remain in possession of those homes.
In my experience, many politicians even campaign in Nimba on the theme, “You won’t be evacuated.” As a people, we need to decide whether we want the prewar Yekepa or to continue with the eyesore it is today. This isn’t AML’s call; it is Liberia’s.
A key point of contention has been the issue with the containers. This is a valid point but clarification around this theme is also needed. 𝐓𝐡𝐨𝐬𝐞 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐫𝐬 𝐰𝐞𝐫𝐞 𝐧𝐨𝐭 𝐝𝐞𝐬𝐢𝐠𝐧𝐞𝐝 𝐟𝐨𝐫 𝐋𝐢𝐛𝐞𝐫𝐢𝐚𝐧 𝐒𝐭𝐚𝐟𝐟. I want you to read it again; 𝐓𝐡𝐨𝐬𝐞 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐫𝐬 𝐰𝐞𝐫𝐞 𝐧𝐨𝐭 𝐝𝐞𝐬𝐢𝐠𝐧𝐞𝐝 𝐟𝐨𝐫 𝐋𝐢𝐛𝐞𝐫𝐢𝐚𝐧 𝐒𝐭𝐚𝐟𝐟.
Those containers were for expat staff, as is done anywhere in a mining environment. After the first phase of the operations, a lot of the expats left, and those containers were left underutilized.
Some Liberian staff applied for those places and opted to lose a portion of their housing allowance because the containers have electricity (are fully air conditioned) and water. The largest container camp is the 100-man camp. Then, there’s a 30-man Redsea Camp in Yekepa. Similar structures exist in Buchanan. If AML has over 5,000 direct and indirect employees, this suggests that only 4% of the employees are in containers.
So, the over-exaggeration that folks are in containers should be called out. Some of my former colleagues have confirmed to me that they have even moved out of those containers and now reside in Ganta because they were given notices by the company that it doesn’t intend to run those containers anymore. It must also be noted that every staff member without accommodation is entitled to a housing allowance.
If you live in Yekepa or Gbarnga, you’re paid at least 10% of your salary as a housing allowance. In Buchanan, you receive 15% of your salary as a housing allowance, and in Monrovia, 20% of your salary. I must, however, clarify that this applies to full-term employment. To the lawmakers who are passionate about addressing the housing issue, you have a clear opportunity to rectify this situation.
We propose allocating funding to the National Housing Authority (NHA) to construct decent homes in the concession areas. The NHA could then collaborate with AML to design a scheme where housing allowances are paid directly to the NHA on a monthly basis.
This approach would allow the government to build assets in the counties, create additional jobs, and significantly improve citizens’ living conditions. For instance, if a staff member receives a housing allowance of $300 per month, the NHA would collect $3,600 annually. This model could finance a home within 8 to 10 years. Alternatively, the National Social Security and Corporation could undertake this initiative if it has the financial capacity.
This presents a significant window of opportunity. Within a decade, the corporation could own hundreds of homes as valuable public assets. This is precisely the kind of situation where policymakers are meant to act decisively. 𝐈𝐭 𝐜𝐚𝐧’𝐭 𝐛𝐞 𝐚 𝐬𝐡𝐨𝐮𝐭𝐢𝐧𝐠 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧!
Besides, the operational context has fundamentally changed. One key difference is that LAMCO, which operated for decades, was not remitting US$3 million annually to counties for social development as we see today. Under the current MDA, Nimba County receives US$1.5M, Grand Bassa US$1M, and Bong US$500K in social development funds.
Perhaps we need to ask the hard questions about how those funds are managed by the central government and local authorities. Those funds were not provided by LAMCO before the war, which made it easier for them to build and operate amenities like an Olympic sized pool for leisure.
On the educational front as conceived in the MDA, the AML scholarship program I managed has supported 99 students, with 76% of beneficiaries from these three counties (disaggregated as Nimba 30%, Bong 29%, and Grand Bassa 17%).
A current batch is being recruited. I’ll leave the link below if you choose to compete. Furthermore, AML’s TVET institute is not only the best in Liberia; its students consistently take first or second place in annual Africa wide skills competitions, a testament to its quality.
AML is also a primary driver of the national economy. The Liberia Revenue Authority has recognized the company as the largest contributor to government revenue multiple times in the last seven years.
The company employs thousands of Liberians, and its compensation structure is exceptional: a supervisor’s pay at AML is comparable to a manager’s salary in other private firms, and managers earn more than senior government ministers.
This extends to teachers and nurses at AML facilities, who are the highest paid in the country. The company’s schools offer enrollment to community children for under L$100, providing a critical service.
While AML has not fulfilled every aspect of the agreement perfectly, such as the consistent placement of a Liberian in one of the top three executive roles, significant progress has been made. Today, Liberians hold 50% of senior management positions.
We now have a Liberian serving as General Manager for Mines, the highest operational role, and the Deputy Head of Rail and Port is a Liberian; the Head of Rail and Port was also a Liberian until his resignation years ago.
A critical point of clarification we need to consider is the distinct roles of the private sector and the government. The fundamental issue is a tendency to expect the company to replace the government in terms of service delivery. This is an unrealistic expectation. AML’s responsibility is to operate responsibly, pay its taxes, and meet its contractual obligations.
The government’s duty is to utilize public resources for broad development. When LAMCO operated for decades, it left dusty roads; AML is now criticized for not doing enough, even while undertaking projects not in the MDA. The company was to rehabilitate and operate a TVET institute. Yet, they’re building a new one in Buchanan even though it still operates the one in Yekepa.
The challenge is to collaborate effectively to ensure that the benefits of the concession translate into tangible improvements for all Liberians, through both corporate responsibility and effective governance. https://www.facebook.com/share/r/1B1A9RoKa4/?mibextid=wwXIfr
