Published: January 23, 2026
CAPITOL HILL, Monrovia — The Liberian government has asked the Senate to approve a sweeping third amendment to its Mineral Development Agreement with ArcelorMittal Liberia, promising tougher oversight, clearer production targets, and expanded revenue measures as lawmakers press for a bigger national return from the country’s iron ore wealth.
Mines and Energy Minister R. Matenokay Tingban presented the revised agreement to a joint Senate committee on lands and mines, concessions, judiciary, finance, and energy, describing it as the product of years of negotiations shaped by national interest and past weaknesses in monitoring.
“The revised MDA is designed to provide certainty in revenue generation, employment creation, and long-term development planning,” Tingban told senators, saying the new terms allow the government to better project royalty revenues tied to increased iron ore production and exports.
Higher output targets, tighter rail oversight
Tingban said the amendment reinforces the government’s leverage not only over mining operations but also over the strategic Nimba–Grand Bassa rail corridor, tightening compliance and monitoring across the rail-and-port system used to move iron ore.
Under the proposed terms, ArcelorMittal would be required to ship at least 5 million metric tons of iron ore annually by 2027, ramping up to a minimum of 20 million metric tons per year by 2031. The amendment also introduces enforceable rules for any shipments above the 20-million-ton threshold.
A key enforcement change is the inclusion of a late-penalty provision, which Tingban said gives the government an option to sanction breaches without immediately moving to terminate the agreement—an approach he described as more predictable and flexible.
Localization tightened at the top
The amendment also aims to close what officials called a long-standing gap in the localization framework. While the current agreement requires at least one Liberian among the company’s top three managers, it does not clearly define which executive roles qualify.
Tingban said the revised MDA explicitly lists four top executive positions, chief executive officer, chief operating officer, chief financial officer and chief administrative officer, and requires that at least one of those posts be held by a qualified Liberian starting one year after the amendment takes effect.
Community funding increased
Community development funding would rise by nearly 67%, from US$3 million to US$5 million, alongside new commitments in education and public infrastructure in concession-affected areas, Tingban said.
Finance ministry outlines tax and royalty changes
Deputy Finance Minister for Fiscal Affairs Anthony Myers detailed fiscal reforms aimed at increasing government take while keeping Liberia competitive for large-scale mining investment.
Among the proposals is a revised excess-profit mechanism. Myers said if the benchmark iron ore price is set at US$100 but rises to US$150, then 2% of the excess US$50 would be taxed, pushing the corporate tax rate for that year to 30%, up from the negotiated base of 25%.
The amendment would also reduce allowable interest deductions from 50% to 25%, expanding the taxable base, Myers said.
While Liberia’s Revenue Code allows losses to be carried forward for five years, the negotiations set a seven-year loss carry-forward, Myers said, citing the long lead times associated with major mining investments.
On royalties, Myers acknowledged longstanding concerns about clarity and timing. While the law sets royalties at 4.5%, the proposed amendment pegs royalties at 4%, payable within 30 days of shipment—faster than the previous 45-day post-quarter schedule.
Surface rental fees would also be adjusted, charged at US$5 per acre for the first 10 years of exploration, then US$10 per acre for years 11 to 25.
“These measures are designed to strike a balance between maintaining investment attractiveness and ensuring the country secures a fair return from its natural resources,” Myers said.
Jobs, training and local priority
Labor Ministry Deputy Minister for Administration Othello P. Mansou urged swift ratification, arguing the new terms would expand employment, training and capacity-building—particularly in Grand Bassa and Nimba counties.
“If a vacancy exists and Liberians are capable of doing the job, Liberians will be given those opportunities,” Mansou said, describing the amendment as an attempt to reduce dependence on expatriate labor for jobs Liberians can fill.
He said the agreement includes plans for technical and vocational training schools in Grand Bassa and would prioritize affected communities for specialized education in geology and mining engineering. The deal also provides for annual overseas sponsorships to build expertise and return skilled Liberians to the sector.
“This means the proceeds and expertise will remain in-country,” Mansou said.
Justice Ministry backs agreement
Deputy Justice Minister for Administration and Public Safety Cllr. Cora Hare Konuwa, speaking for the Ministry of Justice, endorsed the revised MDA as “fair and reasonable” for Liberia and said the ministry welcomes scrutiny as lawmakers continue their review.
“From everything that has been said, the new amendments that are made to this agreement, we consider them to be fair and reasonable for Liberia,” Konuwa said.
Senators are expected to continue deliberations in the coming days, with the government framing the amendment as a major reset aimed at boosting Liberia’s revenues from iron ore, strengthening oversight of strategic infrastructure, and ensuring more direct benefits for Liberians and host communities.
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