ArcelorMittal Liberia (AML), a subsidiary of the global steel giant Mittal Steel, is significantly amplifying its investment in Liberia, injecting an additional US$2.5 billion into its operations over the past two decades. This substantial investment underscores Liberia’s growing prominence as a key player in the global iron ore market. A recent media tour of AML’s facilities in Buchanan, Grand Bassa County, offered journalists a firsthand look at the company’s operations, particularly its Phase 2 expansion project. This initiative focuses on modernizing rail infrastructure, upgrading port facilities, and laying the groundwork for future operational phases. AML representatives, including Marco Miranda, General Manager of Rail, and Winston Daryoue, Communication Manager, provided in-depth presentations highlighting the company’s overall operations and the specifics of the Phase 2 expansion.
Since its arrival in Liberia in 2005, AML has weathered various challenges, including the Ebola virus pandemic, to become a cornerstone of the Liberian economy. As the company approaches its 20th anniversary in the country, it reaffirms its commitment to Liberia’s economic development and social progress. As one of the world’s top five iron ore producers, AML employs 126,000 people globally, with its Liberian operations directly employing 2,100 individuals and indirectly supporting an additional 5,300 jobs. This substantial workforce contribution significantly impacts Liberia’s employment landscape.
Beyond job creation, AML demonstrates its commitment to Liberia through various social responsibility initiatives. A key aspect is the company’s investment in education and skills development. AML has invested US$7 million in a tuition-free vocational training program in Yekepa, Nimba County, equipping Liberians with valuable skills for the job market. Furthermore, AML runs a community scholarship program for high school and university students and operates three schools in Yekepa, catering to a total of 1,000 students. These educational investments aim to empower future generations and contribute to Liberia’s long-term human capital development.
AML’s commitment to youth development extends beyond traditional education. The company actively recruits recent college graduates, providing on-the-job training to enhance their practical skills and prepare them for successful careers within the organization. Additionally, AML’s Youth Program (YPP) has achieved a remarkable 90% placement rate, with most participants securing employment within the company. Furthermore, AML collaborates with the Liberian government on an international scholarship program, benefiting over 50 students, further demonstrating its dedication to nurturing future leaders.
AML also prioritizes community health and environmental sustainability. The company operates two hospitals, one in Buchanan and another in Yekepa, both currently undergoing upgrades to enhance healthcare services. In addition to providing medical care, AML partners with local communities on health awareness programs, including drug awareness initiatives, promoting community well-being. This holistic approach to social responsibility demonstrates AML’s commitment to contributing to the overall improvement of the communities in which it operates.
The Phase 2 expansion project, launched in 2022, has already generated 1,000 new permanent jobs and over 2,000 short-term positions, primarily related to the rail system upgrade. This expansion signifies AML’s ongoing investment in Liberia’s infrastructure development and its commitment to creating employment opportunities. The company’s annual contribution to the Liberian economy is estimated at US$35 million, projected to increase to US$75 million, further solidifying its role as a major economic driver. The US$800 million investment in a 243-kilometer rail system, designed to handle a wide range of bulk commodities, emphasizes AML’s long-term vision for Liberia’s infrastructure development.
The rail system upgrade is a crucial aspect of AML’s Phase 2 expansion, aiming to enhance logistical efficiency and support the transportation of various goods. AML emphasizes the importance of training Liberians to manage the rail system effectively, drawing on successful models implemented in other countries with established rail networks, such as Australia, Brazil, and Canada. This commitment to skills transfer ensures that the upgraded rail system benefits Liberia in the long run by empowering local expertise. AML is aligned with the Liberian government’s vision for a fully functional multi-user rail system along the Buchanan Corridor. The proposed User-Operator structure in the Third Amendment is internationally recognized as a successful model for bulk commodity transportation, with examples in Australia, Brazil, Canada, and neighboring Guinea. AML has also agreed to the Rail System Operating Principles (RSOP) suggested by the Liberian government, ensuring adequate protection for the government and other users of the rail system. These new Multi-user Principles will be implemented immediately. A dedicated Rail Authority will oversee standards, monitoring, and inspection of rail operations, ensuring safety and efficiency. AML’s comprehensive investment and its collaborative approach with the Liberian government position it as a key catalyst for Liberia’s economic growth and sustainable development.
