Liberia and West African Exploration/Sable Mining on Friday to signed a 25-year iron ore transshipment deal worth $1.3 billion. The president/CEO of the company, Aboubacar Sampil signed on behalf of the company; while the acting chairman of the National Investment Commission (NIC), George Wisner signed on behalf of the Liberian government.
According to the deal, Liberia will allow the transshipment of Guinean-based iron ore via the port of Buchanan in Grand Bassa County.
Sable Mining, based London, has 80 percent shares and West African Exploration based in Guinea owns 20 percent. West Africa Exploration/Sable Mining will invest $300 million in the first five of the 25 years and thereafter $1 billion in the remaining 20 years of its operations.
The company is also expected, as part of the deal, to rehabilitate and expand the existing railroad from Yekepa in Nimba County to the port of Buchanan in line with the use of a third party access rights between the Liberian government and steel giant ArcelorMittal, according to the release.
Moreover, the company, as per the deal, will pay a signature fee of $250,000 and on an annual basis, beginning on the first anniversary of the date of operations, will make a contribution of not less than $2.5 million to the social development funds of the affected counties in the deal. The company will also pay an annual concession fee of 1.5
million to $5 million for the transshipment of iron ore from zero million/tonne to 10 million/tonne each year, as well as taxes and duties as mandated in the deal.
Thus, the company is mandated in the deal to construct a new railroad from Guinea via Tokadeh to Yekepa in line with the railway there.
Upon consummation by the Liberian legislature, the West Africa Exploration/Sable Mining is expected to begin transshipping iron ores later this year.
At the signing ceremony Friday at the headquarters of the National Investment Commission (NIC) in Mamba Point in Monrovia, Minister of Lands Mines and Energy said the sealing the deal meant more than offering economic opportunities for Guinea and Liberia amid the Ebola outbreak in the region.
Minister of Lands, Mines and Energy, Patrick Sendolo: “The agreement is in defiance of the rigid and cruel laws imposed by this disease (Ebola). Contrary to what the disease dictates—that we should not cooperate, we should not interact—this agreement is saying that only should we do those things, we shall do them in a grand way.”
The Guinean presidential advisor on investment, commerce and industry, Aminata Sylla and Guinean ambassador to Liberia, Abdullai Dore were also present with host of Liberian government officials, including the Ministers of Lands, Mines and Energy, Justice, Youth and Sports and Transport.
A third party agreement with ArcelorMittal for the company’s use of its railway in Yekepa at the Liberia-Guinea border will seal the deal completely.
According to the acting chairman of the National Investment Commission, negotiation for the signing of the deal lasted for like three year but points back to the administrations of Ahmed Sekou Toure of Guinea and William R. Tolbert of Liberia.
The Guinean Ambassador said the signing typified the outcome of the Mano River Union and south-south cooperation.
Minister of Transport, Angela Cassell-Bush said the agreement will increase revenue in Liberia’s transport sector.