ArcelorMittal Liberia (AML) has publicly endorsed the user-operator framework proposed in the third amendment to its Mineral Development Agreement (MDA) with the Liberian government. This framework, successfully implemented in countries like Australia, Brazil, Canada, and Guinea, establishes a shared railway model where AML, as a significant investor in the rail infrastructure, retains operational control while granting access to other users under the oversight of a newly established Rail Authority. This authority will ensure transparent and non-discriminatory rail operations by setting standards, conducting inspections, and monitoring compliance. AML believes this model fosters economic growth by attracting foreign investment and maximizing the utilization of Liberia’s rail infrastructure.
AML draws parallels with Guinea’s bauxite mining sector, where mining companies invest in, operate, and share railway and port infrastructure, contributing significantly to the national economy through taxes and royalties. Under this arrangement, operators maintain control for a defined period, typically 35 years, while guaranteeing access to other users. AML advocates for a similar approach in Liberia, arguing that it incentivizes infrastructure development and provides a stable, predictable environment for investors. They caution against policies that favor external operators at the expense of established investors, potentially deterring future investment.
Addressing concerns about Guinean ore being transported through Liberia, AML asserts that Guinea’s long-standing resistance to such proposals, coupled with the recent completion of their Trans-Guinean Railway, makes this scenario unlikely. They question the viability of attracting investment in Liberia’s rail infrastructure if the government intends to transfer control to third-party operators after initial investments are made. AML emphasizes the importance of learning from Guinea’s success by creating an investor-friendly climate that secures long-term economic benefits from Liberia’s natural resources.
Contrary to accusations of monopolizing the rail corridor, AML maintains its consistent commitment to shared rail usage through structured agreements that benefit both the Liberian government and businesses. They highlight a clause in their proposed MDA that allows the government to remove them as the operator if they obstruct access for other companies. AML insists they have not hindered any company’s use of the railway and that any delays in third-party access are not attributable to their actions. They underscore their investment of over $800 million in the rail infrastructure, significantly enhancing its operational capacity and aligning with the government’s vision for a multi-user railway system.
To demonstrate its commitment to infrastructure improvement and transparency, AML recently organized a media tour for journalists, showcasing upgrades along the railway line, including a new railway station in Buchanan and a digital monitoring system. This initiative aimed to counter misconceptions about their stance on shared rail usage. AML emphasizes their active role in modernizing the government-owned railway and their willingness to collaborate with other users under a fair and transparent framework.
The core issue, according to AML, revolves around the government’s choice between a model that attracts investment and promotes growth, or policies that could discourage future infrastructure development. They advocate for a user-operator framework that balances investor interests with national development goals, ensuring efficient and equitable access to Liberia’s valuable rail resources. AML’s position is that a stable and predictable regulatory environment is essential for attracting the significant investments required to further develop Liberia’s infrastructure and unlock its economic potential.
