CAPITOL HILL, MONROVIA – The Liberian House of Representatives has officially mandated its Committees on Concessions & Investment; Mines, Energy, Natural Resources and Environment; and Judiciary to review the Third Amendment to the Mineral Development Agreement (MDA) between the Government of Liberia and ArcelorMittal.
The decision followed a formal submission from President Joseph N. Boakai, Sr. on Tuesday, during the first day of the Third Session of the House, seeking legislative review and subsequent ratification of the amended agreement. The action signals a critical step toward modernizing Liberia’s largest iron ore concession and ensuring greater returns for the state.
The Third Amendment concerns the original Mineral Development Agreement, entered into on August 17, 2005, between the Government of Liberia and ArcelorMittal Holdings AG, ArcelorMittal USA Liberia Holdings LLC, and ArcelorMittal Liberia Limited, the latter serving as the operating company. The Agreement had been amended previously on December 28, 2006, and January 23, 2013.
President Boakai emphasized in his communication to lawmakers that the new amendment, signed on December 20, 2025, consolidates all prior modifications into a single, fully amended document, reflecting extensive negotiations and consultations between the government and the multinational corporation.
A cornerstone of the Third Amendment is the Railroad System Operating Principles (RSOP), which grant the Government of Liberia the right to establish a multi-user rail regime under a new framework. The amendment ensures non-discriminatory access to the Yekepa–Buchanan rail corridor and anticipates a transition to an independent, government-regulated rail authority by 2030.
The Agreement also extends the duration of the MDA to December 20, 2050, with an option for renewal, providing long-term stability and a clear investment horizon for the concessionaire while committing ArcelorMittal to Liberia’s national rail vision.
Production expansion is another major feature, with ArcelorMittal Liberia pledging to increase output from 15 million wet metric tons per annum (MWMTPA) by 2027, to 20 MWMTPA by 2031, and up to 30 MWMTPA thereafter, signaling a commitment to intensify mining operations and national revenue generation.
Financially, the Amendment includes a US$200 million upfront payment to the Government of Liberia upon ratification and raises the annual mining license fee from US$50,000 to US$500,000, ensuring the state captures greater economic benefits from its natural resources.
Community development is heavily emphasized. ArcelorMittal Liberia is obligated to contribute US$5 million annually to a Community Development Fund (CDF) to finance socioeconomic projects in the concession areas. The Amendment also mandates a Social Infrastructure Plan covering Nimba, Bong, and Grand Bassa Counties, including the rehabilitation of bridges, roads, and the establishment of a Vocational Training Center in Buchanan.
Penalties for delays in implementing these community projects are clearly outlined, ranging from US$250,000 to US$500,000 annually in additional CDF contributions, underscoring the government’s intent to enforce compliance and accountability.
On employment, the Agreement sets ambitious local participation targets, guaranteeing 50% of management positions by the third anniversary, 75% of professional, administrative, and technical positions by the fifth anniversary, and 90% by the tenth anniversary, subject to Liberia’s labor laws. This provision aims to ensure Liberians are meaningfully integrated into all levels of concession operations.
Local procurement and workforce training are also prioritized, requiring ArcelorMittal Liberia to source goods and services locally wherever possible, while dedicating US$500,000 annually to education and skills development programs to support long-term capacity building.
President Boakai emphasized that the Third Amendment represents a significant advancement in economic development, infrastructure modernization, and community empowerment, aligning with the government’s ARREST Agenda for Inclusive Development.
The President urged lawmakers to give the agreement favorable consideration and ratification, noting that timely legislative approval will unlock immediate financial benefits, accelerate infrastructure projects, and strengthen governance oversight of Liberia’s natural resources.
The House Committees now have the responsibility to conduct a thorough review of the Third Amendment, examine the strategic benefits, and ensure the Government’s and Liberia’s national interests are adequately protected before final ratification.
The move positions the Liberian legislature at a pivotal juncture, balancing the country’s longstanding reliance on iron ore revenues with the need for accountability, local empowerment, and sustainable development within the mining sector.
