MONROVIA – ArcelorMittal Liberia (AML), the country’s largest mining concessionaire, has admitted to multiple breaches of its Mineral Development Agreement (MDA) with the Government of Liberia during a Senate hearing held on Thursday, July 10, 2025.
The high-stakes session, convened by the Liberian Senate, brought together key government institutions — including the Ministries of Finance, Mines and Energy, Public Works, and the National Bureau of Concessions (NBC) — to assess AML’s compliance with the legal, financial, and environmental terms of the MDA, spanning over two decades of operations.
During the hearing, Senator Nya D. Twayen, Jr. of Nimba County presented a comprehensive list of violations, including AML’s failure to appoint Liberians to senior executive positions — as required under Article 10 of the MDA — and its inability to construct and equip modern health facilities in affected concession areas, in violation of Article 20b.
Senator Twayen, Jr. further accused the company of financial manipulation through transfer pricing and trade mis-invoicing, which he argued are being used to avoid tax obligations and deny Liberia its fair share of profits.
“After more than 20 years of operations, AML still claims it operates at a loss — never declaring a profit. We believe this is a result of deliberate financial manipulation,” said Senator Twayen, Jr.
Public Works Minister: No Record of Infrastructure or Processing Plant
In a major revelation, Minister of Public Works Roland Giddings disclosed that his Ministry has no official documentation on infrastructure development by AML, including the highly publicized concentration plant in Nimba County.
“We do not have documentation or engineering records related to the construction of the concentration plant or associated infrastructure,” Minister Giddings stated, raising serious concerns over transparency and inter-agency coordination.
Mines and Energy Paye confirmed that, despite its ceremonial commissioning, the plant remains incomplete. They noted that AML has exported over 16 million metric tons of direct shipment ore without significant local processing — a violation of value-addition requirements under the MDA.
Water pollution violations confirmed by Bureau of Concessions adding to the environmental scrutiny, Director General Theodore S.B. Momo of the National Bureau of Concessions (NBC) reported that the Bureau’s most recent compliance review, uncovered violations of water quality standards in AML’s operational area.
“Our latest assessment clearly showed water pollution within the concession zone, a direct breach of AML’s environmental obligations under the MDA,” said Director Momo.
The Environmental Protection Agency (EPA) was notably absent from the hearing, drawing sharp criticism from lawmakers concerned about the environmental risks, particularly around the St. John River, a previously contaminated waterway now showing signs of recovery.
Additionally, Mines Minister Wilmot Paye revealed that no payments have been received from AML into the US$100,000 annual Mineral Research and Development Fund, in violation of Article 22 of the Agreement.
Social Development Fund Mismanagement and Financial Irregularities
The Senate also addressed serious concerns surrounding the Social Development Fund (SDF). Between 2020 and 2025, AML reportedly withheld US$4.8 million earmarked for Bong, Nimba, and Grand Bassa Counties. Of that amount, only US$2.08 million has been accounted for in completed development projects.
Acting Minister of Finance Anthony G. Myers acknowledged that the 2020 Memorandum of Understanding (MOU) used to govern these disbursements may not be legally enforceable under the MDA — raising legal and accountability questions over AML’s engagements with local communities.
“Taxes and royalties are legal obligations — not corporate favors. Referring to them as ‘contributions’ is both misleading and unacceptable,” asserted Acting Finance Minister Myers.
Senate Demands Full Audit and Immediate Action
Frustrated by gaps in regulation and enforcement, senators called for a comprehensive forensic audit of AML’s operations. The audit is expected to cover:
- Financial records and tax compliance
- Executive staffing obligations
- Implementation of infrastructure projects
- Environmental practices and remediation measures
While AML cited ongoing negotiations around a proposed Third Amendment to the MDA, lawmakers stressed that the current agreement is fully enforceable — and the violations must be addressed immediately.
With growing scrutiny from both the legislature and the public, ArcelorMittal Liberia’s long-established operations face significant legal, regulatory, and reputational challenges moving forward.
The AML Hearing is expected to continue in the near future.
