ArcelorMittal signs landmark agreement with Government of Liberia; signals commencement of one of the largest mining projects in West Africa
September 10 2021 - 12:15PM
10 September 2021, 17:00 CET
The Government of the Republic of Liberia and ArcelorMittal
(‘the Company’), the world’s leading steel company, today signed an
amendment to the Mineral Development Agreement (‘MDA’) which paves
the way for the expansion of the Company’s mining and logistics
operations in Liberia.
With the MDA amendment coming into effect, the ArcelorMittal
Liberia will significantly ramp up production of premium iron ore,
generating significant new jobs and wider economic benefits for
Liberia.
The expansion project - which encompasses processing, rail and
port facilities - will be one of the largest mining projects in
West Africa. The capital required to finalise the project is
expected to be approximately $0.8 billion, as it is effectively a
brownfield expansion.
The expansion project includes the construction of a new
concentration plant and the substantial expansion of mining
operations, with the first concentrate expected in late 2023,
ramping up to 15 million tonnes per annum (‘mtpa’). Under the
agreement the company will have reservation for expansion for at
least up to 30mt. Other users may be allowed to invest for
additional rail capacity.
Economic benefits
As the largest foreign investor in Liberia, ArcelorMittal
Liberia has invested over $1.7 billion in the country over the past
15 years.
More than 2000 jobs are expected to be created during the
construction phase, with Liberians envisaged to fill the majority
of the roles created.
ArcelorMittal operates a Vocational Training Centre and provides
two-year residential certificate training in mechanical and
electrical trades.
As part of the expansion, ArcelorMittal Liberia has also
launched a training and development program for high potential
Liberian employees who will gain on the job experience and
knowledge in ArcelorMittal Mining operations globally.
The employees will receive advanced training in the fields of
mining production and operation optimisation, plant maintenance,
planning and execution, plant electrical operation systems, and
electrical maintenance. Other training areas include plant fitting
and heavy-duty mobile equipment maintenance, as well as mine
production and operations.
The investment in advanced skills training demonstrates
ArcelorMittal Liberia’s commitment to providing employment and
professional development opportunities to Liberians.
In addition, it is envisaged that the expansion will further
boost the growth of small and medium sized businesses in Liberia
which offer a range of services to ArcelorMittal Liberia.
Commenting on the agreement, his Excellency George
Manneh Weah, President of the Republic of Liberia,
said:
“We are delighted to have reached this important agreement with
ArcelorMittal Liberia, our long-term partner in the development of
the mining sector in Liberia. This agreement demonstrates to the
world that Liberia welcomes foreign direct investment and is a key
emerging destination for capital. It further supports the
Government’s ’Pro Poor’ agenda, which is underpinned by the
importance of creating jobs to lift Liberian citizens out of
poverty. The further investment by ArcelorMittal in Liberia bears
testament to the company’s confidence in the future of this
country. We are confident that our constructive working
relationship will go from strength to strength.”
Lakshmi Mittal, Executive Chairman, ArcelorMittal,
said:
“The expansion underlines ArcelorMittal’s long-term commitment
to Liberia and the importance of a continued productive partnership
with the government which helped bring this project to fruition. I
would like to thank President Weah and his administration for their
invaluable commitment and support which has been critical in
enabling us to sign today’s agreement.
“The expansion of mine, processing, rail and port facilities is
the largest iron ore project in West Africa and will draw
international attention to Liberia as an attractive country to
invest in. The current planned expansion is part of a long-term
commitment by ArcelorMittal to Liberia that includes undertaking
planning for the further expansion of our iron ore asset to at
least 30mtpa.”
Aditya Mittal, CEO, ArcelorMittal, added:
“This project is an important component of our strategic growth
programme, designed to ensure ArcelorMittal captures the best
organic growth opportunities within our business. The Phase 2
expansion in Liberia is an excellent example of how we can leverage
growth opportunities within our existing asset base to deliver
sustainable, long-term value. Signing the MDA amendment will enable
us to capitalise on and add to the infrastructure investments
previously undertaken and transform ArcelorMittal Liberia into a
large-scale, premium product operation.”
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