Mittal Renegotiates Key Mining,  Rail Agreement Amid Fears of Sovereignty Erosion

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ADNews-Monrovia, Liberia: ArcelorMittal Liberia (AML) is renegotiating the terms of its third amendment to its Mineral Development Agreement (MDA) and the Rail System Operating Principles (RSOPs) with the Inter-Ministerial Concession Committee (IMCC). According to leaked documents obtained by this publication, several of AML’s original proposals appear to strengthen what international watchdog Global Witness warned more than 20 years ago, a “state within a state” scenario that critics say is now coming to fruition.

The most contentious element is a proposed “supremacy clause,” which states that the AML agreement would prevail in any conflict with Liberian law. If approved, analysts warn, Liberia would effectively surrender control of one of its most strategic national assets,the Yekepa-to-Buchanan rail and port corridor,to a private foreign company.

The draft amendment and revised RSOPs would also redefine AML’s entire concession as a “single production area” treated as land under a mining license. This designation would give the company unilateral authority to determine who can access the railway and the surrounding land. If adopted, critics argue, Liberia could become a tenant within its own borders for another 25 years or more.

Under the proposal, AML would pay only US$500,000 annually for rights to land and rail access, an amount experts describe as far below the corridor’s true economic value.

The rail corridor is among the most resource-rich regions in the country. Former Mines and Energy Minister Wilmot Paye estimates that roughly 17 billion tons of iron ore lie along the route, worth a theoretical US$2.38 trillion at current global prices. Advocates fear that the amendment could put control of this vast potential in the hands of a single company that does not fully disclose its operations.

AML has publicly claimed the new MDA could generate US$100 million in annual government revenue, but the company has not explained the basis of that estimate or how compliance would be monitored.

Critics say AML is working to entrench its monopoly by blocking competition, suppressing investment, and depriving Liberians of the jobs and revenue a genuinely multi-user rail system could create. The company is accused of attempting to push through a binding agreement that would allow it to override the National Rail Authority’s selected independent operator.

AML’s recent financial performance may explain why it is determined to retain exclusive rail access. The company’s Q3 2025 report shows record iron ore production and exports from Liberia, contributing to a surge in its parent company’s share price, which recently hit a 52-week high. Despite this growth, AML does not publicly disclose its Liberian turnover, taxes paid, or dividends transferred to the government, especially notable after the state’s ownership stake reportedly dropped from 30 percent to 15 percent without public explanation.

Under its current MDA, AML pays a fixed fee of US$800,000 “in lieu of all import duties, taxes, and fees.” For two decades, the company has effectively served as its own auditor and reporter on production and exports, benefiting from 15 years of tax stabilization on imports and fuel. Observers say the company has little incentive to change an arrangement that has served it so well.

In his final address as minister, Paye urged continued vigilance and stronger management of Liberia’s mineral wealth.

“We cannot continue to be pushed around for peanuts while this country sits on abundant minerals with the potential to transform it into a first-world nation,” he said. “The Ministry of Mines and Energy is now fully reborn, with a motivated team, modern infrastructure, digitalized systems, and renewed public and investor confidence. The future of Liberia’s mineral and energy sectors is bright, but it must be safeguarded for the nation, not for the greed of a few.”

Paye warned that Liberia must “never allow a single company to control or possess the rail corridor for any reason,” adding, “This is not just about economics; it is about national sovereignty and the future of Liberia.”