Mining: Liberia Risks Losing $170 Million Investment to Ivory Coast Amid HPX’s Dominance of Multi-User Discussions

Conakry, Guinea – The Nimba Development Company (NDC) has voiced concerns about delays in accessing Liberian infrastructure for transporting iron ore, cautioning that it “cannot afford to wait idly” while discussions over rail access through Liberia stall.

Without naming any companies, NDC referenced other entities not as advanced in development that are nonetheless dominating conversations on using Liberian transport infrastructure.

NDC, which has secured regulatory clearances with the Guinean government, expressed disappointment in the Liberian government’s ongoing deliberations, calling them “unproductive” and a hindrance to progress.

“The fact that this conversation is being entertained by the Liberian government is unproductive and only serves to delay critical progress,” NDC stated. The company emphasized that its Mineral Development Agreement (MDA) includes provisions for shared access, enabling it to operate efficiently with all required Guinean approvals.

As a modern mining company focusing on West Africa, NDC holds an 85% stake in Société de Développement Nimba (SDN), with the Guinean government holding the remaining 15%. Together, they aim to responsibly develop the Nimba Iron Ore Project and its associated infrastructure in the Nimba region.

Initially, NDC had planned to transport ore via Liberia’s railway from Yekepa to Buchanan.

However, due to the recent delays and uncertainty, it has opted to temporarily route shipments through the Ivory Coast. “Until then, we will continue to use Ivorian infrastructure to advance our project, as we cannot delay further,” NDC added.

The company reiterated its readiness to increase tonnage on the Buchanan-Yekepa railway and invest $170 million in developing a dedicated port in Buchanan, contingent upon the ratification of ArcelorMittal Liberia’s third MDA and assurances of rail access.

NDC highlighted the importance of involving the Guinean government in any discussions about Liberian infrastructure, noting that these conversations “should not be held in a vacuum.”

Project Analysis Highlights Economic and Environmental Impact

On October 15, a technical review session took place in Conakry on NDC’s framework and terms for the Nimba Iron Ore Project. Attendees included environmental experts, project coordinators, and representatives who assessed the project’s 22.83 km² mining area and its potential effects on the biodiversity of the Nimba Mountains and local communities.

Financially backed by Belgian and British firms, Africa Mining Corporation BV and AMCO, under GAJAH Investment Group, the project promises local economic benefits through job creation, increased tax revenue, and infrastructure support. However, given its proximity to the Mount Nimba Strict Nature Reserve, a UNESCO World Heritage site, the project faces strict environmental requirements.

A key focus was environmental preservation, with the technical committee stressing that achieving environmental compliance will require “exceptional rigor.” NDC must carry out a meticulous environmental and social impact assessment. While Guinea’s Ministry of Environment does not grant mining permits, a favorable assessment is crucial before the Ministry of Mines can issue an exploitation permit.

With a UK registration and an experienced management team, NDC includes Guinean shareholders who are keen to contribute to Guinea’s economic progress. The company’s national coordinator highlighted the project’s significance, noting that Guinea will retain 15% of exploitation profits. “Iron is a key asset for us, and we eagerly anticipate the start of on-the-ground operations,” she said.

The review session concluded with provisional approval of NDC’s report, provided that recommendations are incorporated into the biosphere management and development plan for the Nimba Mountains.

While NDC ultimately plans to use Liberian transport infrastructure, it has signaled readiness to advance its project using Ivorian routes, asserting its commitment to economic and environmental standards in Guinea’s Nimba region.

New Republic Liberia

Alphonso Toweh

Has been in the profession for over twenty years. He has worked for many international media outlets  including: West Africa Magazine, Africa Week Magazine, African Observer and  did occasional reporting for CNN, BBC World Service, Sunday Times, NPR, Radio Deutchewells, Radio Netherlands. He is the current correspondent for Reuters 
 He holds first  MA with honors in International  Relations and a  candidate for second master in International Peace studies and Conflict  Resolution from the University of Liberia.