MONROVIA, LIBERIA-The Liberian Government has clarified reports alleging that it did not follow the legal channel in signing the Ivanhoe Atlantic Concession and Access Agreement.
According to information minister Piah, every legal process for the signing of a concession agreement is being followed by the government.
Minister Piah said the instrument was signed by the Inter-Ministerial Committee and will be submitted to the National Legislature for ratification.
He said, “The signing of the Ivanhoe Atlantic Concession and Access Agreement was done in line with the Public Procurement and Concession Commission Law.”
Meanwhile, Minister Piah says following the ratification, the instrument will be signed by President Joseph Boakai and submitted to the Foreign Ministry for publication.
The government says Ivanhoe will be granted initial rail access for five million metric tons per annum during phase one of its operations.
It will also be required to expand and develop a new rail and port infrastructure to accommodate up to thirty metric tons per annum, contingent on feasibility studies and regulatory approval of the agreement.
The National Concession Commission release disclosed that the operations of Ivanhoe will be governed under ArcelorMittal Liberia’s Mineral Development Agreement.
The Agreement also mandates Ivanhoe to make contributions to the Community Development Fund, to support local infrastructure, education, and health services.
Meanwhile, the company is expected to create over five hundred direct jobs during the construction phase of the project and approximately three thousand indirect jobs through Liberian suppliers and service providers.
Ivanhoe Liberia Limited, owned by the High-Power Exploration from the United States, will transport iron ore from Guinea through Liberia.
A release issued said the Agreement was signed by the Chairman of the Inter-Ministerial Concession Committee, Jeff Blibo, Finance Minister Augustine Ngafuan, and Mines and Energy Minister Wilmot Paye.
Others include Transport Minister Sirleaf Tyler and Justice Minister Cllr. Oswald Tweh, while the President and Chief Executive Officer of Ivanhoe Liberia, Ltd., Bronwyn Barnes signed on behalf of the company.
The release is quoted as saying over the twenty-five-year period, Ivanhoe will make a series of payments to the government, including ten million US dollars upon ratification of the Agreement.
The company is also expected to pay fifteen million US dollars once given physical access for phase one of operations in the country.