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ADNews-Monrovia, Liberia: Nimba County Senator Nyan D. Twanyen Jr. has publicly rejected the ratification of the proposed Third Amendment to the ArcelorMittal Mineral Development Agreement (MDA), citing concerns over corporate restructuring, accountability, concession governance, and the omission of binding social infrastructure obligations.
Speaking to journalists on Thursday, Jan. 15, 2025, in Monrovia, Twanyen said the amendment,currently before the Liberian Senate for consideration,represents far more than a routine administrative update. As the senator of the host county for ArcelorMittal’s mining operations, he said the proposed changes demand rigorous scrutiny due to their implications for Liberia’s national resources and affected communities.
“The proposed Third Amendment is a consequential restructuring of one of Liberia’s most strategic concession arrangements,” Twanyen said. “It is not a routine exercise and cannot be treated as such.”
At the center of Twanyen’s opposition is the reassignment of rights and obligations from ArcelorMittal Switzerland AG to ArcelorMittal USA Liberia Holdings LLC, a newly structured entity operating across multiple jurisdictions. He questioned the timing and transparency of the transaction, noting apparent inconsistencies in the dates surrounding the company’s restructuring and the signing of the amended agreement.
“These unanswered questions raise serious doubts about enforceability, accountability, and the extent of leverage granted under the agreement,” he said, adding that the Legislature must be clear on which entity the government negotiated with and which entity ultimately bears responsibility.
Twanyen warned that while the amendment asserts that all obligations are transferred, it fails to include explicit parent company guarantees, continuity clauses for past liabilities, or enforceable security instruments to protect Liberia in the event of default or arbitration. Without such safeguards, he said, historic violations and unmet obligations risk being diluted in practice.
“A concessionaire cannot be permitted to repackage itself in a way that weakens accountability while retaining access to our mineral wealth and strategic infrastructure,” he said.
The senator also criticized the use of a restated and consolidated MDA without clear preservation of accrued rights, penalties, and unresolved breaches under the original agreement and prior amendments. He warned that this approach could obscure outstanding obligations owed to the government and affected communities, particularly in Nimba County.
Another major concern raised by Twanyen is the proposal to designate the entire concession area,including undeveloped and future exploration zones, as a single production area. He said such an approach contradicts international best practice and risks locking communities into prolonged uncertainty.
“A production area is a legal authorization to extract,” he said. “Declaring land productive where no mining is taking place amounts to surrendering regulatory control without corresponding benefit.”
Twanyen argued that mining operations should follow a phased approach, with specific areas brought forward for approval based on demonstrated readiness, while unused zones remain subject to future legislative and regulatory review. He cautioned against what he described as “mineral warehousing” under the guise of integrated infrastructure development.
The senator further expressed concern over the treatment of social infrastructure obligations in the proposed amendment. While existing and prior MDAs contain binding requirements for the construction of roads, bridges, hospitals, health centers, and schools, Twanyen said those commitments are omitted from the Third Amendment.
Instead, the amendment proposes that a separate social infrastructure or impact plan for Nimba, Bong, and Grand Bassa counties be developed within three months after ratification,a move Twanyen described as unacceptable.
“Deferring core community obligations to post-ratification instruments of uncertain legal force weakens legislative oversight,” he said, adding that the history of noncompliance makes reliance on future promises untenable.
Twanyen called on the Inter-Ministerial Concessions Committee (IMCC) to provide the Legislature with a comprehensive social impact and community development framework, including clear timelines, as an appendix to the draft agreement before any ratification is considered. He also urged lawmakers to request all transfer documents, beneficial ownership affidavits, and audited financial statements from ArcelorMittal entities dating back to 2005 to establish clarity on profits, dividends, investments, and returns.
“This position is not anti-investment,” Twanyen said. “It is pro-Liberia, pro–rule of law, and pro-community. Liberia welcomes responsible investment, but no investor is above accountability.”
He concluded that ratifying the Third Amendment would be premature unless liability continuity is clearly secured, parent guarantees are provided, production areas are properly defined, and social infrastructure obligations are explicitly included in the agreement.
“The people of Nimba County, and the people of Liberia, deserve better than uncertainty, deferred promises, and weakened oversight,” Twanyen said. “Concession compliance is not optional, and development must be real, enforceable, and just.”
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