Monrovia – The protracted negotiations between High Power Exploration (HPX) and the Liberian government over the Liberty Corridor project appear to be faltering, as mounting evidence suggests that the government is shifting its stance in favor of its existing agreement with ArcelorMittal Liberia (AML). This shift signals a major setback for HPX’s ambitious plans to transport iron ore from Guinea through Liberia.
Despite the issuance of Executive Order No. 136 by President Joseph Boakai in October 2024, which reaffirmed the government’s commitment to equitable access to Liberia’s rail infrastructure, new developments indicate that Liberia is subtly reneging on its multi-user infrastructure model. A recently obtained letter from Ivanhoe Atlantic’s President and CEO, Bronwyn Barnes, to Liberia’s Minister of Justice, Hon. Oswald Tweh, sheds light on the extent of this drift.
HPX and its subsidiary, Ivanhoe Atlantic, had banked on the provisions of Executive Order 136 to ensure their access to the Yekepa-to-Buchanan rail corridor. However, Barnes’ letter, dated January 24, 2025, expresses deep frustration that the latest draft of the Rail Access Agreement does not reflect HPX’s input and, more importantly, entrenches ArcelorMittal’s control over the railway infrastructure. Barnes points out that the draft agreement does not align with HPX’s 2022 Framework Agreement with the Government of Liberia. It directly contradicts the principles of Executive Order No. 136 by allowing ArcelorMittal to maintain its grip on the rail infrastructure, he insinuated. Additionally, it introduces new financial obligations that were never part of HPX’s prior commitments, effectively shifting costs unfairly onto the company.
“The current draft agreement perpetuates monopolistic control over rail access, which has historically limited competition and hindered the country’s growth,” Barnes wrote in her letter to Minister Tweh, demanding urgent intervention before the February 15, 2025 deadline.
Complicating matters further is a January 15, letter from U.S. Senator James Risch, Chairman of the Senate Foreign Relations Committee, to Secretary of State Antony Blinken which raised concerns over HPX’s lobbying efforts to secure U.S. strategic backing under the Countering People’s Republic of China Influence Fund (CPIF). According to Risch, HPX sought to exploit the CPIF to justify the establishment of the National Railway Authority (NRA) under the guise of countering China’s growing mining footprint in West Africa.
While the CPIF is intended to curb Chinese influence in Africa, Risch’s noted that HPX overstepped by trying to align Liberia’s domestic rail policy with a broader geopolitical agenda. He stated that U.S. embassy staff admitted to leveraging CPIF’s broad guidelines to fabricate a counter-PRC nexus and to repurpose the initiative to address unrelated objectives. These revelations have cast a shadow over HPX’s credibility and raised doubts about whether its ambitions align with Liberia’s national interests.
The government, through the National Investment Commission (NIC) and other relevant agencies, appears increasingly resolute in ensuring that ArcelorMittal retains its long-standing control over the rail infrastructure. NIC Chairman Jeff Blibo has pushed back against HPX’s criticisms, stating that thorough due diligence is required to protect Liberia’s economic interests. In his November 28, 2024, letter to HPX, Blibo reiterated that Liberia remains committed to a multi-user model but insisted that AML’s historical investments in the rail infrastructure cannot be overlooked. He argued that any transition to independent operators must be carefully managed to avoid economic disruption. He further stated that the government will not compromise on a model that ensures open access and protects Liberia’s long-term economic interests.
Yet, HPX sees this position as nothing short of a government betrayal. Barnes, in her letter to Minister Tweh, warns that unless the government honors its commitments under the Framework Agreement and Executive Order 136, HPX will have no choice but to invoke its remedy rights under the 2022 Framework Agreement.
Among the key issues raised are the indefinite appointment of ArcelorMittal as the rail operator, which contradicts Executive Order 136. There is also the failure to secure independent oversight of the railway infrastructure by the NRA and the arbitrary cap of two million tons per annum for Ivanhoe Atlantic’s operations, despite prior agreements allowing for up to thirty million tons per annum in future expansions. Additional financial obligations imposed on HPX that were never part of the original agreement further complicate the negotiations.
HPX warned that that if Liberia does not rectify these issues before mid-February, HPX will pursue legal remedies, potentially escalating the matter to international arbitration.
“As you are aware, if we are unable to conclude an agreement consistent with our Framework Agreement and also the President’s directive to the IMCC by mid-February 2025, Ivanhoe Atlantic will have no choice but to enforce the rights reserved to us under the 2022 Framework Agreement with the Government of Liberia,” Barnes wrote.
ArcelorMittal has invested over US$1.7 billion in Liberia over the past 15 years, encompassing various aspects of its mining operations, including the rehabilitation and development of rail infrastructure.
A significant portion of this investment has been allocated to the restoration and enhancement of the railway system, which is crucial for transporting iron ore from mining sites to the Port of Buchanan. Additionally, the company’s recent expansion plans include further upgrades to both rail and port facilities.
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