NIMBA COUNTY, LIBERIA – Nimba County Senator Nya D. Twayen on Monday, September 29, 2025, posted on his official Facebook page the contents of a Red Flag Memo, raising serious concerns over the third proposed ArcelorMittal Liberia (AML) amendment now before the Legislature. The assessment, conducted by the Columbia Center on Sustainable Investment (CCSI) and the International Institute for Environment and Development (IIED), was commissioned by the Bi-Partisan Legislative Caucus on Illicit Financial Flows and Tax.
He explained the context of the release, saying, “As promised, an assessment done by a reputable independent institution requested by the Legislature to advise on the third Proposed AML Amendment. I made the promise days ago to upload information so as to adequately have the public informed as to why we keep pushing for retroactive implementation of defaulted clauses of the MDA while at the same time ensuring that any new amendment must be in the interest of our people with clear monitoring activities to track progress. We will rest here for now and revert to the committee room of the Senate for the final report from the hearing and the proposed advisory that would set the basis for full compliance. However, if AML send any of their hired and misplaced government agents to come here and misinform the public, I will be right back to chase them away; gone are the days of empty grandstanding on Facebook to be some clever person with nonsense praises for companies ripping off our people.”
According to the institutions, the memo was prepared as a high-level policy review to flag issues that deserve deeper scrutiny from both the Legislature and the Liberian public. While not a legal analysis, the assessment provides critical warnings on fiscal provisions, environmental safeguards, community rights, and the equitable sharing of benefits.
The memo pointed out potential fiscal risks, particularly exemptions on import duties and fuel imports. It warned that partial exemptions after year 15 could harm domestic industries if goods that can be produced locally are instead imported duty-free. More troubling, the analysis said, was the possibility of incentivizing “dirty” fossil fuel imports rather than pushing AML to invest in renewable energy projects that could serve both company operations and surrounding communities.
On local content, the memo stressed that Liberia must focus on building skills and knowledge transfer, rather than simply setting quotas for local employment. It recommended that the burden of proof rest with the company to demonstrate why Liberian goods, services, or labor cannot be used, ensuring the country’s workforce benefits fully from AML’s billion-dollar operations.
Environmental and social protections were flagged as another glaring weakness in the amendment. The institutions noted that while the original agreement required an initial environmental impact assessment, the third amendment contains no provisions for updated Environmental and Social Impact Assessments (ESIAs) despite AML’s proposed expansion. They urged lawmakers to demand comprehensive ESIA requirements whenever there are significant project changes, in line with Liberia’s 2017 ESIA guidelines.
The assessment also called for climate resilience measures to be written into the agreement. It cautioned that mining projects must account for rising climate risks such as flooding and extreme weather, particularly with infrastructure like tailings dams. The memo recommended that climate-related risks be placed squarely on the company, preventing it from using force majeure clauses to escape obligations.
Equally troubling, the analysis criticized the proposed structure of the Community Development Fund. Under the amendment, 80 percent of community funds would be managed by the government and 20 percent by AML, leaving local communities with no meaningful participation. The memo argued that such a structure could divert funds away from real community needs and further entrench company leverage. Instead, it recommended multi-stakeholder committees that include community-elected representatives, women, youth, and people with disabilities.
On the matter of free, prior, and informed consent (FPIC), the memo revealed that the amendment fails to bring the AML agreement in line with Liberia’s Land Rights Law of 2018 and the Community Rights Law of 2009. These laws require FPIC for land and forest concessions, but the proposed amendment ignores this safeguard, potentially leaving communities vulnerable to land dispossession without consent.
The assessment further noted risks of corruption in procurement and fronting practices if strict anti-corruption clauses are not included in the agreement. The memo urged Liberia to learn from other countries that have introduced contract provisions to prevent such abuses in resource deals.
On compensation, the memo highlighted that the amendment does not adequately address how affected communities will be compensated for land loss, displacement, or other damages. It criticized the original contract’s limitation of compensation to private landowners, ignoring customary land rights recognized under Liberian law. International best practices, it said, demand fair compensation for all legitimate tenure holders, including customary users, gatherers, and fishing communities.
The fixed-payment model proposed for community contributions was also deemed inadequate. The memo explained that fixed payments fail to rise with increased production or profitability, allowing companies to amass disproportionate profits while local communities see no added benefit. A mixed model tying contributions to revenue, production, or profit, alongside fixed payments, was proposed as a fairer arrangement.
Senator Twayen, in sharing the memo, emphasized that the document is not anti-investment but pro-accountability. He stressed that Liberians must not be shortchanged in negotiations with multinational corporations. “We welcome investment, but not at the expense of our people, our environment, and our sovereignty,” he posted.
The concerns raised in the Red Flag Memo come as the Legislature prepares to debate the ratification of the third AML amendment. Lawmakers are under increasing pressure from both local communities and civil society organizations to demand transparency and ensure the agreement delivers genuine benefits to the country.
While the memo acknowledges the amendment contains provisions on training and support for Liberian-owned businesses, it warns that without strong oversight and clear enforcement mechanisms, such clauses risk becoming empty promises. The institutions advised the Legislature to seek additional legal and technical advice before ratification.
