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AML not against shared railway, but what does HPX bring to the table?

by Lennart Dodoo
February 26, 2025
in Featured
Reading Time: 3 mins read
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AML not against shared railway, but what does HPX bring to the table?

Monrovia – The battle for control over Liberia’s railway infrastructure continues to heat up as HPX and its partner Invanhoe Liberia continue to aggresively push its bid for access and control of the rail linking Buchanan to Yekepa.

ArcelorMittal Liberia, which currently operates the rail, has invested about US$800 million in the rehabilitation of the railway. However, HPX is demanding exclusive access with0ut making any comparable financial commitment, a move ArcelorMittal Liberia argues is detrimental to Liberia’s long-term economic interest.

AML maintains that its Mineral Development Agreement (MDA), first amended in 2007, has always provided for shared railway and port access. However, no Liberian mining company has requested access to the rail, with interest instead coming from Guinean mining entities, particularly Société des Mines de Fer de Guinée (SMFG) and Sable Mining.

The ongoing dispute traces back to a history of failed negotiations with third-party users. In 2010, AML explored a joint venture with BHP, the then-owner of SMFG, to develop the Nimba iron ore deposits spanning Guinea and Liberia. That deal collapsed due to valuation disagreements. Later, in 2013, AML sought to acquire SMFG from BHP with support from then-Liberian President Ellen Johnson Sirleaf. However, Guinean authorities under President Alpha Condé blocked the transaction in favor of a partnership with Rio Tinto to develop the Trans-Guinean Railway. Faced with an uncertain infrastructure burden, AML abandoned the deal.

Similarly, in 2013, Sable Mining sought access to the railway. While AML was willing to engage in discussions, it required Sable to invest in infrastructure linking its Guinea deposit to Tokadeh. Instead, Sable proposed that AML purchase its ore at the border, failing to provide the necessary product specifications. The company ultimately collapsed due to financial struggles, a downturn in global commodity prices, and a corruption scandal involving Liberian Senator Varney Sherman.

Contrary to claims that AML has monopolized the railway, a 2019 intergovernmental agreement between Liberia and Guinea allowed limited third-party access, capping transit at five million tonnes per annum (mtpa). However, HPX and Ivanhoe Liberia are now demanding rights for an unprecedented 20-30 mtpa—far exceeding AML’s own production capacity. AML argues that while it welcomes third-party users, they must meet investment, operational, and logistical requirements, standards HPX and past applicants have failed to satisfy.

Beyond its railway investments, AML has made significant contributions to Liberia’s economy, including a new $1.7 billion investment in an ore processing plant and the promise of over 2,000 jobs. In contrast, HPX has yet to make significant direct investments in Liberia but seeks to transport its Guinean ore through the country while only paying transit fees. AML views HPX’s insistence that it should not be the operator of the railway as a deliberate attempt to undermine its expansion plans and deprive Liberia of economic benefits.

The dispute has also impacted other prospective rail users, including the Nimba Development Company (NDC), which accused HPX of obstructing its plans to utilize Liberia’s railway and port infrastructure. NDC, which holds a 25-year mining concession in Guinea’s Mount Nimba, had announced intentions to invest in Liberia’s rail network but has faced significant delays due to HPX’s opposition to a multi-user framework.

AML continues to reiterate that it has no financial stake in third-party transit fees, as all proceeds will go directly to the government. The broader question, however, remains: will HPX’s push for exclusive railway control align with Liberia’s long-term economic stability, or is it a calculated attempt to dominate Liberia’s key infrastructure for its own gain?

Tags: AcelorMittal-LiberiaAMLHPX
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Lennart Dodoo

Lennart Dodoo

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