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ADNews-Monrovia,Liberia: A new player seeking access to the Yekepa–Buchanan railway is positioning itself to reshape Liberia’s export economy. Ivanhoe Liberia, the local subsidiary of U.S.-based Ivanhoe Atlantic, is advancing an ambitious multimillion-dollar plan to rehabilitate and expand one of the country’s most critical transport corridors.
The 245-kilometer railway, which links the mineral-rich east to the Port of Buchanan, remains Liberia’s shortest and most cost-effective route to global markets. Ivanhoe Liberia says its proposal will strengthen the country’s strategic advantage and help establish Liberia as a key commercial hub in West Africa.
The company’s Concession and Access Agreement (CAA), submitted to the Legislature with the backing of President Joseph Boakai, follows more than six years of negotiations with the Inter-Ministerial Concessions Committee, including talks under former President George Weah’s administration.
Unprecedented Infrastructure Investment
Ivanhoe Liberia’s three-phase initiative is poised to become one of the largest infrastructure investments in Liberia’s recent history, focusing exclusively on rail and port development.
Phase 1 includes an estimated $64 million investment to rehabilitate and prepare the existing railway and port infrastructure for operations. Once ratified, the CAA triggers an additional $35 million in concession and milestone payments. The company has also pledged millions more toward community development programs in Nimba, Bong and Grand Bassa counties.
Phase 2 calls for an additional $888 million in direct capital spending:
— About $452 million will support railway upgrades.
— Around $436 million will finance the expansion of Buchanan Port.
The improvements are expected to boost the corridor’s capacity to transport 30 million metric tons of iron ore annually from the Kon Kweni Iron Ore Project. Planned works include 22 kilometers of haul roads, new bypasses, rail spurs, and the mobilization of a commercial quay at the port.
Combined, the investments will exceed $1 billion, creating hundreds of direct jobs and thousands of indirect ones. Ivanhoe Liberia has already paid $37 million in access deposits to the government through the Central Bank between 2019 and 2022. In 2022, the Liberia Revenue Authority recognized Ivanhoe as the country’s second-largest overall revenue contributor.
Breakdown of Concession and Milestone Payments
According to the CAA now before the Legislature, the immediate payments include:
— $1 million within 10 business days after the president signs the CAA.
— $10 million within 10 business days after the agreement takes effect.
— $15 million upon unimpeded physical access to rail and port infrastructure.
— $2.33 million when the National Rail Authority Act is enacted.
— $3.33 million upon appointment of an Independent Operator by the NRA.
— $3.33 million on the first anniversary of the Independent Operator’s appointment.
These payments are in addition to dividends, taxes and duties that will accrue during the life of the concession.
Community Impact and Environmental Oversight
A Community Development Fund will be established to benefit residents along the railway in Nimba, Grand Bassa and Bong counties. Annual contributions will begin at $1 million, increasing each year for five years until reaching $5 million annually.
The company has completed environmental and social impact assessments in both Liberia and Guinea, outlining mitigation measures aimed at protecting communities and ecosystems near its operations.
Local Content Commitment
Ivanhoe Liberia says it will prioritize Liberian workers. Phase 1 operations are expected to generate 500 direct jobs in construction, haulage, ore handling, port operations, engineering, and health and safety. An additional 3,000 indirect jobs are projected in sectors such as waste management, border security, hospitality, healthcare and transportation.
A Multi-User Rail System for National Growth
The Boakai administration is championing a multi-user rail model, which officials say will ensure long-term economic benefits not tied to a single mining operation. The system is expected to spur growth in agriculture, manufacturing, health and education.
The initiative builds on the 2021 Liberia-Guinea Bilateral Implementation Agreement, aligned with the African Mining Vision and regional integration principles of ECOWAS and the Mano River Union.
Opening the Yekepa–Buchanan corridor to multiple users, officials say, will transform it into a national growth engine, linking Guinea’s iron-ore-rich Nimba region to global markets through Buchanan Port and solidifying Liberia’s position as a regional trade hub.
Ivanhoe Atlantic’s multibillion-dollar investment, the largest U.S. private investment in Liberia to date, signals renewed confidence in Liberia’s economic trajectory and could redefine the country’s logistics and export landscape for decades.
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