In November 2005, the erstwhile National Transitional Government of Liberia (NTGL), headed by Gyude Bryant, entered into a “Mineral Development Agreement” (MDA) with the world’s largest steel company for mining of iron ore in Yekepa, Nimba County, formerly mined by the Liberia American Mining Company (LAMCO) that folded as a consequence of the Liberian civil crisis.

Through arrangements by the National Patriotic Party leadership of ex-President Charles Taylor, decisions were reached that the mining activities gradually resume with initial preparation made through bilateral arrangements, thus resulting to the establishment of a Liberia Swedish Mining Company (LIMINCO).

But upon the seating of Ellen Johnson Sirleaf as Liberia’s democratically elected President, the MDA between the government of Liberia and the Mittal Steel was renegotiated with several changes made arising from contentious issues that the government felt was not in the interest of the Nation and its people.

The renegotiated vision of the Mittal Steel Agreement was then sent to the National Legislature for ratification, where it stayed over three months, with members of the first branch of government identifying flaws and vowing not to hastily rectify the Act.

Following months of debates and public hearings with the management of Mittal Steel, government officials, mining experts and civil society organizations, the House of Representatives, a week ago, ratified the Agreement with onward transmission to the Liberian Senate for concurrence.

The Liberian Senate which heard series of debates and hearings, last Friday finally concurred with the House of Representatives and ratified the Agreement, thereby giving the largest steel company the green light to resume full-scale mining activities in the country, expected to provide thousands of job opportunities to Liberians.

With the ratification of the Mittal Steel Agreement by the National Legislature, the company is expected to invest one billion United States dollars into the venture, which has a lifespan of 25 years and will require the review of the agreement after every seven years by the government of Liberia.

The MDA entered into by the government and Mittal Steel, among other things, stipulates that the company is expected to provide US$3M to the three counties where the latter will be operating, for development purposes each year.

“Nimba County will receive US$1.5M, Bassa will receive US$1M, while Bong County will receive US$500,000 every year,” the agreement indicates.

Meanwhile, Bong County Senator Jewel Howard-Taylor, during the ratification process, filed a motion for reconsideration on Friday at the Senate’s extra-sitting, where that body overwhelmingly voted in full concurrence with decisions of the Lower House.

The wife of former President Taylor contended in her motion that she was not against the company to operate in the country, but stressed that the ratification of the agreement did not meet two-thirds majority of the 30 membership of the Senate, in addition to it not been put on the floor for discussion before passage.

She also upheld that there was certain portion of the agreement that did not serve the best interest of the Liberian people.

President Pro-Tempore of the Liberian Senate, Grand Gedeh County, Senator Isaac Nyenabo, placed a stay-order on the Bong County Senator’s contention on grounds that the motion was not in the interest of the suffering masses and had the propensity to cause more hardships to many Liberians who have been caught in the unemployment web.

Senator Nyenabo told Legislative reporters that he tabled the motion in line with the Senate’s standing rule.

Copyright © 2007 The Analyst. All rights reserved.