Monrovia – The Liberian government is contemplating a controversial move that could shake the foundations of its mining industry—removing ArcelorMittal Liberia (AML) as the operator of the Yekepa-to-Buchanan railway and outsourcing control to a third-party. This decision, if implemented, threatens to destabilize one of the country’s largest foreign investments, put thousands of jobs at risk, and cost Liberia millions in lost revenue.
The move comes as AML prepares to pump an additional US$1.7 billion into Liberia’s economy, an expansion expected to create more than 2,000 new jobs. The company, which has already invested over US$800 million in rehabilitating the railway, has maintained that while it supports a multi-user agreement, it must retain operational control to safeguard its investment. However, mounting pressure from High Power Exploration (HPX) and its affiliates to take over the rail line is raising concerns about whether the government is on the verge of making a grave miscalculation.
Economic and Investment Uncertainty
ArcelorMittal Liberia has long been a key economic driver in the country, contributing significantly through job creation, infrastructure investment, and tax payments. If the government hands railway control to HPX or another private operator, it risks creating uncertainty that could deter future investment—not just from AML but from other multinational firms looking for stability in Liberia’s business environment.
AML’s planned expansion, which includes an ore processing plant and increased mining capacity, could be derailed if the government’s decision forces the company to reconsider its operations. Without AML’s continued investment, Liberia’s mining industry could face serious setbacks.
A crucial aspect of this expansion is AML’s plan to enhance its energy infrastructure to support mining operations. The company is currently constructing two power plants, one in Yekepa and another in Buchanan, to ensure reliable electricity for its Phase II expansion project.
The Yekepa facility, a 72-megawatt plant, will power AML’s new state-of-the-art iron ore concentrator plant, a key element in tripling production output. Meanwhile, the Buchanan site will host a 21-megawatt power plant to support port operations and automatic offloading facilities. These power plants are nearing completion and will be instrumental in sustaining AML’s operations and Liberia’s broader industrial ambitions.
The Taxpayer’s Burden
AML was recognized as Liberia’s highest taxpayer in 2024, providing substantial financial contributions to national development. By contrast, HPX has yet to make any significant direct investment in Liberia’s railway but seeks exclusive control while paying only transit fees. Should AML’s operational control be revoked, Liberia may lose millions in tax revenue, while the economic benefits promised by HPX remain uncertain.
Additionally, AML’s investment in Liberia extends beyond taxes and employment. The company has spent more than US$800 million rehabilitating the country’s railway, which had been rendered inoperable after the civil war. The 280-kilometer rail line connecting Yekepa to Buchanan was restored between 2007 and 2012 under AML’s leadership, ensuring a modernized transport system capable of handling an axle load of 30 tonnes and speeds of up to 70 km/h. The government’s decision to alter the operator could disrupt these improvements and introduce inefficiencies.
Jobs at Stake
AML directly employs thousands of Liberians and supports many more through contracts with local businesses. Its expansion project is projected to create at least 2,000 additional jobs. If AML is forced to scale back operations due to uncertainty over railway control, thousands of livelihoods could be affected, exacerbating Liberia’s already high unemployment rate.
Beyond mining, AML’s infrastructure projects, including road rehabilitation and workforce training programs, contribute significantly to local communities. The company’s Training Academy plays a crucial role in upskilling Liberians for long-term careers in the mining sector, ensuring a sustainable talent pipeline for the country’s industrial development.
Legal and Contractual Concerns
AML’s Mineral Development Agreement (MDA) includes provisions for shared railway use, yet HPX is pushing for an unprecedented 20-30 million tonnes per annum (mtpa) transit capacity—far exceeding AML’s own production levels. Handing over control to HPX without ensuring it meets similar investment and operational commitments could set a dangerous precedent for undermining existing agreements.
HPX’s Controversial Push for Control
Despite its limited investment in Liberia, HPX has aggressively lobbied for control of the railway. Its partnership with Robert Gumede, a South African businessman linked to multiple corruption scandals, has raised concerns about the ethical implications of granting the company control over such a strategic national asset. Additionally, HPX has reportedly engaged in backdoor dealings with Liberian officials, promising financial support for the establishment of a National Rail Authority as a means to secure its position.
Questions also remain about HPX’s actual ability to finance its proposed “Liberty Corridor” project. While the company claims its $5 billion infrastructure plan will revolutionize transport in the region, it has yet to demonstrate how it will fund such an ambitious endeavor. Without concrete financial commitments, Liberia risks entering into an agreement that could leave its railway operations in limbo if HPX fails to deliver on its promises.
Liberia’s Long-Term Interests
Liberia’s railway infrastructure is a critical national asset that must be managed in a way that maximizes its economic benefits. Rather than stripping AML of its operating rights, the government should focus on implementing a fair and transparent multi-user framework while maintaining AML’s control over railway operations. This would ensure ongoing investment, job security, and stable revenue streams while allowing other mining entities access under clear and enforceable regulations.
The broader implications of Liberia’s decision extend beyond mining. AML’s Phase II expansion is a transformative project with long-term benefits for the country’s economy. The modernization of its concentrator plant, increased iron ore production, and improvements to Buchanan’s port are not just essential for AML’s success but also for positioning Liberia as a competitive player in the global mining industry. Jeopardizing these advancements in favor of an untested alternative could hinder the nation’s development trajectory.
Liberia faces a crucial decision that could have lasting consequences for its economy. Outsourcing railway operations to an unproven entity like HPX could lead to job losses, revenue shortfalls, and a weakened investment climate. The government must resist political pressures and prioritize long-term economic stability by upholding AML’s operational control while allowing for regulated third-party access.
With billions in investment, thousands of jobs, and the country’s economic future at stake, Liberia cannot afford to gamble on an untested alternative. The best path forward is one that safeguards investor confidence, strengthens economic security, and ensures sustainable development in Liberia’s mining and infrastructure sectors.
Moreover, AML’s additional investments in power generation and port expansion further underscore the company’s commitment to Liberia’s economic transformation.
Discussion about this post