Africa-Press – Liberia. Liberia is losing billions of dollars in potential revenue as foreign mining companies continue to extract vast quantities of mineral wealth with minimal returns to the country, legal experts warned at the recently concluded Liberia National Bar Association (LNBA) Annual Convention in Ganta.
Delivering the keynote address on the theme “Strengthening the Rule of Law: The Lawyer’s Role in Restoring Public Trust,” Cllr. Marck M. M. Marvey said Liberia’s extractive sector remains one of the most poorly managed in West Africa, despite decades of natural resource exploitation by major multinational players.
Marvey pointed to startling figures from the Liberia Extractive Industries Transparency Initiative (LEITI) showing that ArcelorMittal Liberia (AML) generated over US$1.21 billion between 2009 and 2022, while the Government of Liberia received only US$138 million—approximately 11 percent of total revenue.
“It must be noted that unprocessed iron ores are shipped out of Liberia, and other minerals such as gold and diamonds uncovered at AML’s plant are also exported without proper reporting,”
—Cllr. Marck Marvey
He called on Liberian lawyers to “identify and close loopholes” in concession agreements, stressing that the legal community has a responsibility to prevent the perpetual exploitation of Liberia’s natural resources by foreign corporations.
Despite over 20 years of mining activity, Yekepa—once envisioned as a model mining township—remains in ruins. Observers note that the community’s condition paints a grim picture as housing camps are overgrown, alleyways and public spaces are dilapidated, no functioning pipeborne water system, portions of the Mount Tokadeh railroad remain damaged, and the mini-dam and several essential facilities are abandoned
This neglect comes at a time when AML has reportedly increased production using two-headed trains pulling approximately 120 wagons per trip, raising concerns that production—and corresponding government losses—are accelerating.
Loopholes in Law and Practice: “Foreign Companies Are Eating Liberia Alive”
Cllr. Marvey, an expert in natural resource governance, outlined several legal loopholes he believes enable foreign companies to dominate Liberia’s mineral sector at Liberia’s expense.
Marvey described the carbon credit sector as “poorly regulated.”
Liberia currently has no comprehensive carbon trading law, except a Revenue Code provision requiring only 10 percent of carbon credit proceeds to be remitted to the Liberia Revenue Authority.
“Customary communities receive minimal benefits, and foreign companies operate freely with no standardized framework,” he said.
The Bea Mountain 25-Year Extension
The lawyer criticized the extension of the Bea Mountain Mining Company (BMMC) concession, highlighting royalty reduced from 10% to 5%, weak environmental oversight, minimal Community Development Fund contributions, and the company failed to meet earlier obligations, including a promised modern medical facility
Despite these failures, the government approved the extension.
According to the 15th LEITI Report, BMMC exported 11,046 kg of gold valued at US$576.4 million in 2021/2022 but contributed only US$33.98 million—just 26.12%—to state revenue.
Class “B” and Class “A” Licensing Gaps
Marvey highlighted serious oversight challenges when it comes to the issue of the issuance of Class A and Class B mining licenses. He noted that foreigners continue exploit Class B licenses without requirements to form local companies, no legal requirement for value addition. Class A license holders for iron ore can ship other minerals—including gold and diamonds—with “minimal oversight”
Liberia’s Century-Long Struggle with Mining Exploitation
Liberia’s difficulty in benefiting from its mineral wealth is not new. Since the 1950s, a pattern of unequal partnerships with foreign corporations has undermined national development.
LAMCO (1950s–1989): Once one of Africa’s largest iron ore operations, LAMCO extracted millions of tons of ore from Nimba. Yet Liberia saw limited long-term benefits. When operations collapsed during the civil war local communities were left impoverished, infrastructure fell into decay, and environmental damage was never restored.
Bong Mining Company (BMC): Operated by German investors, BMC exported iron ore for two decades but left Liberia with no strong local industrial base, minimal local ownership, weak community development outcomes.
China Union (2009–present): Heralded as a massive post-war investment, the company has been plagued by labor disputes, environmental complaints, limited social services in affected communities, and repeated production slowdowns.
ArcelorMittal Liberia (2005–present): Now the largest mining investor, AML has repeatedly renegotiated agreements, often securing terms favorable to the company rather than the country.
Across administrations—from Tubman to Doe, Taylor to the post-war governments—the story remains the same: Liberia exports raw minerals, foreign firms reap the profits, and communities see little improvement.
Economists describe this as the “resource curse”—a paradox in which countries rich in minerals remain poor because of structural dependency, corruption, and weak negotiation capacity.
Beyond the extractives sector, Marvey criticized Liberia’s justice system, arguing that weak institutions enable concession abuses to continue.
“With poverty, disunity, and poor governance, our democracy needs lawyers who refuse to turn a blind eye to injustice—in courts, communities, and businesses.”
He noted that the courts often favor wealthy and influential individuals, bribery limits access to justice for women and youth, judges who challenge powerful interests are often reassigned, and sensitive cases are redirected to “pliable judges”
These judicial weaknesses, he said, make it difficult to enforce concession obligations or hold companies accountable.
A Call to Action: “Lawyers Must Defend the National Interest”
Cllr. Marvey urged the legal community to take a more assertive role in protecting Liberia’s mineral wealth.
He recommended that no foreign company should operate without allocating at least 20% ownership to Liberians, concession agreements should prioritize value addition and local processing, communities must receive fair compensation—either through royalties or direct equity, and lawyers must serve as watchdogs against both foreign exploitation and domestic corruption.
“The legal profession must be a check against exploitation—foreign or domestic. Lawyers must reform concession agreements, protect citizens’ rights, and strengthen the rule of law.”
Liberia stands at a critical moment. The minerals that have fueled foreign profits for nearly 70 years could—if properly managed—transform the nation’s economic trajectory. But without a stronger legal framework, empowered communities, and a justice system that protects the national interest, Liberia risks repeating the same historical cycle.
According to the LNBA Convention orator, Liberia has resources that could make it prosperous, but unless the loopholes are closed and concession agreements renegotiated, the country will continue to lose billions while its people remain poor.
For More News And Analysis About Liberia Follow Africa-Press
