CAPITOL HILL, MONROVIA – Nimba County Senator Nya D. Twayen has raised serious concerns over Amendment No. 3 to the ArcelorMittal Liberia (AML) Mineral Development Agreement (MDA), warning that the proposed changes could lock Liberia into decades of fiscal, governance, and infrastructure constraints. In a red-flag memo dated Wednesday, January 21, 2025, and prepared for relevant legislative committees, Senator Twayen outlined what he described as significant risks that must be addressed before any ratification.
In the memo, Senator Twayen emphasized that the amendment goes far beyond routine adjustments, fundamentally altering Liberia’s control over its rail, port, and mineral resources. He cautioned lawmakers that the changes could undermine Parliament’s authority and weaken future governments’ ability to reform fiscal and infrastructure policies.
One of the most critical issues highlighted is the extension of the concession term. According to the memo, the agreement is now “automatically extended to 20 December 2050, with additional rolling extensions of up to 25 years each, subject only to feasibility reports and ‘good faith negotiations.’” Senator Twayen warned that this structure could bind Liberia to “potential 75–100 years of concession control” without firm guarantees that future fiscal terms would align with new laws or reforms.
The memo states that future fiscal arrangements would only need to be “generally consistent in approach,” a provision Senator Twayen argues weakens Liberia’s fiscal sovereignty. He noted that this effectively replaces legislative renegotiation with administrative renewal, limiting Parliament’s role in shaping long-term national economic policy.
Another major concern raised involves the governance of Liberia’s railroad infrastructure. Senator Twayen wrote that AML would remain the exclusive railroad operator until at least September 23, 2030, and potentially longer if third-party users are deemed “not ready.” He warned that this condition ties national rail governance to AML’s commercial timeline rather than a fixed national infrastructure policy.
The memo further explains that the transition of rail operations depends on factors such as third-party shipping readiness and conditions largely influenced by AML’s own operations. Senator Twayen cautioned that delays in third-party mining could result in automatic extensions of AML’s monopoly over the rail corridor.
Senator Twayen also raised alarms over the creation of a new, wholly owned rail operating subsidiary that would be exempt from corporate income tax. According to the memo, transfer pricing regulations would not apply to this entity, and exemptions would extend to AML’s pro-rata costs.
“This creates a parallel tax-free corporate vehicle,” the memo states, adding that it eliminates a key tool used by the Liberia Revenue Authority to prevent profit shifting. Senator Twayen warned that the arrangement could enable cost shifting between mining and rail operations, directly contradicting domestic revenue mobilization efforts.
The memo also criticizes provisions that limit government remedies for non-performance. Senator Twayen noted that failure to meet rail expansion or shipping milestones would attract only monetary penalties, with termination explicitly prohibited. He warned that this allows the company to “pay to delay” while retaining control of public resources.
Community obligations were another area of concern. The memo states that while AML is required to submit a Social Infrastructure Plan, “any failure… shall not constitute grounds for termination… sole remedy is increased CDF contribution.” Senator Twayen argued that this makes community commitments non-enforceable and weakens protections under existing local governance frameworks.
Environmental and customs oversight risks were also highlighted. Senator Twayen warned that allowing third-party ore stockpiling and haulage corridors within AML’s concession area could create quasi-free trade transit zones with unclear environmental, customs, and security controls.
The memo further notes that the government would be barred from granting better rail terms to any other user. Senator Twayen described this as a provision that locks AML in as a permanent benchmark concessionaire, undermining competition and limiting the government’s ability to negotiate future infrastructure deals.
Fiscal rigidity is also flagged in the amendment’s treatment of mining license fees. According to the memo, all license fees would be replaced by a flat US$500,000 annual payment from 2031, regardless of production scale. Senator Twayen warned that this structure is regressive and fails to account for expansion, land size, or inflation.
Another provision criticized exempts AML from third-party monitoring fees related to cargo tracking and shipment validation systems. Senator Twayen warned that this undermines customs digitization reforms and creates preferential export treatment.
The memo also questions the true value of a proposed one-time US$200 million payment. While acknowledging its immediate appeal, Senator Twayen cautioned that it may mask far greater long-term losses. He noted the absence of transparent modeling on lost tax revenues, rail access fees, and monopoly opportunity costs.
“Without full fiscal modeling, Legislature cannot determine if Liberia is losing far more long-term revenue,” the memo states, urging lawmakers to demand comprehensive analysis before proceeding.
In his strategic conclusion, Senator Twayen warned that Amendment No. 3 “fundamentally transforms the MDA from a mining concession into a long-term vertically integrated infrastructure control agreement.” He listed weak community enforceability, tax shelter structures, limited termination powers, and infrastructure monopoly protections as key outcomes of the proposed changes.
He further cautioned that the amendment would significantly restrict future government policy space, limiting Liberia’s ability to adapt its resource governance to evolving national priorities.
Senator Twayen concluded that the amendment is “not a technical amendment,” but rather “a material restructuring of Liberia’s rail, port, and mineral governance regime.” He urged legislative committees to treat the proposal with the seriousness it demands, emphasizing that the decisions made now will shape Liberia’s economic sovereignty for generations to come.
