The Government of Liberia and Arcelor Mittal - the world`s largest steelmaker - have agreed a revised mining development deal that will help boost the company`s output of iron ore.

The new deal replaces a deal signed by Mittal, prior to its merger with Arcelor, with the previous unelected government in 2005.

Arcelor Mittal`s activities, which had slowed during the negotiations, are expected to increase as soon as the deal is ratified by the country`s parliament.

Commenting on the news, the president of Liberia, Ellen Johnson-Sirleaf, said the new deal has secured concessions from Arcelor Mittal and protected the country`s national interest.

“We are most pleased to report that after a long session of negotiations in New York … the Mittal Steel agreement was signed today,” said Reuters, citing Ms Johnson-Sirleaf at a news conference in Monrovia on Thursday.

“There were major concessions made and we believe that the national interest has now been protected … Mittal Steel can start its operations,” Ms Johnson-Sirleaf added.

Since winning the country`s first post-war elections last January, the government of Ms Johnson-Sirleaf has been looking at the deal and, in October, said it wanted to revise parts of the original 25-year iron-ore concession.

A key part of which was Mittal`s control of the port of Buchanan and a railway line - which the government would have had to pay to use.

Ms Johnson-Sirleaf also queried the pricing and royalty structure of the original deal which allowed Mittal to establish prices for iron ore, thereby setting its own royalty tax payments, added Reuters.

Earlier this month, Arcelor Mittal said its new mining development deal would generate over US$1 billion of investment and create 3,500 jobs.

Arcelor Mittal`s iron ore output is expected to grow 15 Mt/y as a result of the deal. (December 30)