FLASHBACK: Signing ceremony of the amended MDA deal recently
By Our Staff Reporter
The Liberian Legislature has been cautioned not to ratify the 25 years amended Mineral Development Agreement (MDA) with ArcelorMittal Liberia, in the wake of the failure of the steel giant to implement many provisions in the 2006 MDA signed between it and the Liberian government.
In a statement, some citizens of Grand Bassa County under the banner of the “Bassa United Front for Positive Change” said “that ArcelorMittal has grossly undermined the above listed Articles and sections that bring greater benefits to the citizens and resident of Grand Bassa County.”
The statement was issued in the wake of the signing of the amended US$800 million MDA between the Liberian government and AML in Monrovia few months ago. This is a document that is yet to be made public, although it is one of the key instruments Lawmakers are expected to act upon during their current special session which is due to end in December.
But since the new amended deal was signed, ArcelorMittal Liberia (AML) has strongly defended its record since it began operations in the country, citing its fulfillment of its obligations under the 2006 MDA including payment of royalties to the Liberian government, making its corporate-social responsibilities and the millions of US dollars it has provided for the pavement of the Ganta-Sanniquellie highway.
The citizens noted that the deal signed by AML fifteen years ago was to revitalize the iron ore deposit left behind by LAMCO J.V. operating company, in order to promote employment and the delivery of basic social services after fourteen years of senseless civil war.
But in their statement, they claimed that many of the provisions in the MDA has not been implemented or in some cases only partially been carried out.
“Whereas, realizing the contribution made to the success of Arcelor Mittal and the high quality of the Iron Ore from Liberia, Arcelor Mittal Board had approved plan for phase two, of its Mining Operation in Liberia;
Whereas, in spite of the successes made in phase 1 (one) of Arcelor Mittal Mining Operation, where she exported at least 5 million tons of ore per year, the residents and citizens of Grand Bassa are yet to realize the benefits entitled to them as enshrined in the Mineral Development Agreement (MDA), in term of Employment and community Development programs;” the Grand Bassa citizens’ statement noted.
One of the provisions they cited in Article 10 of the MDA which says that the concessionaire shall construct, maintain and operate health facilities in the construction areas and shall install, maintain and use modern health devices and equipment and shall practice modern health procedure.
However, according to the citizens more 15 years later, “disappointingly, sixteen years after the singing of the MDA, this is yet to be realized.”
They also cited Article 10 sections 2 and 3 on safety and security, claiming lack of safety on the railroad and the AML’s continuous outsourcing of the company, which it said has caused many of the personnel to remain contractors after more than 15 years of the company’s existence in mainly Grand Bassa and Nimba Counties.
Also, quoting “Article XIII- Use of Liberian Services and Materials” in the 2006 MDA, the citizens in Grand Bassa County said AML was not giving first preference to Liberians in terms of purchase of goods and services, citing a leading fishing community in the port city of Buchanan.
“The Barcoline community is one of the most affected communities by Arcelor Mittal operation, this community has its strength in fish production, under this article, use of Liberian service, Arcelor Mittal should have harness the potential of the Barcoline Fishing industry, so that they can sell to the company by doing this, the company would have be transformed the community for tomorrow,” said the statement of the Bassa United Front for Positive Change.
Therefore, the citizens in their statement signed by Du-Ben Cleon, Lead Advocate made the following demand to AML:
“Call on Arcelor-Mittal for the following to wit:
- That Arcelor Mittal gives more employment opportunity to the citizens and residents of Grand Bassa County as one of the custodians of the concessions and employment announcement be place in public areas;
- That Arcelor Mittal give at least 5 technical, administrative and managerial slots to the citizens and residents of Grand Bassa as per the MDA
- That Arcelor Mittal gives at least 15 (fifteen) scholarship, International and Advanced Training opportunities outside of Liberia to the citizens and residents of Grand Bassa County.
- That Arcelor Mittal construct Modern Health Center in Grand Bassa with modern devices and equipments.
- That Arcelor Mittal constructs primary – secondary school in Grand Bassa County with International Standard.
- That Arcelor Mittal strengthen her safety installations on the railroad to meet international standard and discourage continuous derailment of locomotive.
- That Arcelor Mittal employ all her security and discourage outsourcing the security department of the company to security firm.
- That Arcelormittal strengthen the purchase of Liberia Goods and services by beginning with strengthening the Barcoline fish industry and buying from them and outsource canteen services to Liberians more especially to citizen or resident of Bassa
- That Arcelor Mittal ensures that affect communities receives their allotment every year in term of projects and that the balance of 2 million plus dollar be disbursed.
- That Arcelor Mittal ensure the total rehabilitation of the residential area otherwise called the loop.”