Africa-Press – Liberia. The House of Representatives has agreed with the Liberian Senate to constitute a conference committee to address the concerns raised by the Senate over the much debated draft US$800 million Arcelor Mittal Mineral Development agreement.
Last month, the Liberian Senate refused to concur with the House in ratifying the draft MDA among the Government of Liberia, Arcelor Mittal Liberia and Arcelor Mittal Holding A.G on grounds that it did not address most of concerns raised by residents of the affected communities. The Senate as accused the government’s negotiators during the crafting of the draft agreement of making several waivers at the detriment of the state. The Senate then drew up several recommendations to be addressed before the ratification of the agreement.
In a communication to the House of Representatives, the Senate then proposed the constitution of a conference committee to resolve the difference before ratifying the agreement.
On Tuesday, the House voted unanimously in support of the Senate’s proposal to form a conference committee to find a way forward. Speaker Bhofal Chambers, with plenary approval, named several members of the House to join their Senate’s counterpart on the committed.
They are Representatives Clarence Massaquoi (Lofa County), chairman and Rosanna G.D.H. Schaack (Rivercess), co-chair. Serving as members include Representatives Johnson Gwaikolo (District #9, Nimba), Vincent S.T. Willie (District #4, Bong) Cllr. Kanie Wesso (Gbarpolu), Matthew Zarzar (Sinoe), Acarous M. Gray (District #8, Montserrado County) and Joseph Somwarbi (District #3, Nimba County) as the resource person.
The Senate’s membership on the Committee as per the communication include Senator Cllr. Augustine Chea (Sinoe) as Chairman, while Senators Cllr. Varney Sherman, Nyonblee Karngar-Lawrence, Numene R. H. Bartekwa, Simeon Taylor, Prince Moye and Sen. Jeremiah Koung are members.
What are the Senate’s Recommendations?
In its recommendations, the Senate flagged out several contemptuous issues that have dogged the landmark draft MDA since it was signed by the Government of Liberia and Arcelor Mittal in 2021.
Disputed Area and Exploration
The Senate said both the 2005 MDA and the current draft Third Amendment designated the Old LAMCO operation area as the Arcelor Mittal Concession. The Senate said the company has refused to conduct exploration in the area for the past 16 years it has been operating in Liberia. It noted that there is a staunch disagreement between the Ministry of Mines and Energy and the AML where the ministry accused the company of not willing to explore the LAMCO area, and AML, on the other hand committed its willing to explore. The Senate then called for the amicable settlement of the issues.
Rehabilitation of Infrastructures
The Senate maintained that the 2005 MDA obligated the company to rehabilitate infrastructures left behind by LAMCO. These include housing, health and education facilities and other infrastructures, such as power, water and sanitation. This has been a major complaint by residents of the affected communities, especially Nimba County. However, following an investigation by the Senate, it developed a matrix outlining in detail several commitments it said was made by the company to address the residents’ concerns. The Senate is calling for the entire matrix to be included in the agreement before passage.
Third Party Access to Rail and Port Infrastructures
The Senate called for third parties to have unhindered access to the rail and port. It called on the Executive Branch to ensure that AML will cooperate with, give access to and will receive no transit or any other fees from the government and Government-designated third parties who may want to construct a rail or build other infrastructures.
Additional Revenue Consideration
On this, it said: “The Senate takes notes that the negotiation team from the Executive Branch under-negotiated many of the fiscal terms of the MDA and made lots of waiver, howbeit in the spirit of investment contract/concession negotiations. Furthermore the 3rd Amendment adjusted the debt to equity ratio in favor of Arcelor Mittal.”
Owing to this, the Senate recommended that an additional amount of US$25 million be provided by AML to the Consolidated Fund at the Central Bank of Liberia in addition to the amount already indicated in the 3rd amendment; adding that portion of this amount will be used for the benefits of effected communities and the balance for national budget support.
Compliance
The Senate pointed out that there have been lapses by various agencies of the Executive to properly monitor compliance by AML to the terms of the MDA relating to the company’s corporate social responsibilities, environment and safety conditions, and to ensure local businesses benefit from mining operations.
The Senate then called for local businesses to be prioritized to supply goods and services to the mining operations; that environmental audits are conducted and the reports published and that at least 50 percent of professional jobs for Liberians be allocated for professionals from the three affected counties; especially Nimba County if the required skills can be found in these counties.
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