By: Melvin Flomo
WhatsApp: 0778677647
Nimba County, Liberia –In a strongly-worded press statement issued today, Senator Nya D. Twayen, Jr. of Nimba County has accused ArcelorMittal Liberia (AML) of grossly violating key provisions of the 2007 amended Mineral Development Agreement (MDA), just five years before its expiration.
Senator Twayen expressed deep disappointment over what he called "glaring failures" by the steel giant to meet both its contractual and moral obligations to the people of Nimba, especially those in communities directly affected by mining activities.
“While AML boasts of a $1.4 billion infrastructure expansion, our people in Yekepa continue to live in ruins, denied the benefits promised nearly two decades ago,” the Senator stated.
Key Breaches Outlined by the Senator:
1. Deprivation in Concession Areas
The Senator condemned AML for failing to uplift living standards in mining-affected communities, citing lack of basic amenities and crumbling infrastructure in Yekepa.
2. Housing Neglect in Yekepa
Despite years of operations and profits, AML has reportedly abandoned commitments to renovate or rebuild staff housing, leaving structures in decay.
3. Disregard for Liberian Leadership Quota
Citing Article 10 of the MDA, Senator Twayen highlighted AML’s failure to appoint a Liberian to any of its top three executive positions. Currently, the CEO, COO, and CFO are all foreign nationals. Moreover, only 42% of senior management roles are held by Liberians below the 50% requirement due by 2017.
4. Scholarship Funds Misused
AML was mandated to provide $200,000 annually for Liberian scholarships abroad, totaling $3.6 million since 2007. However, the company admitted to starting payments only in 2012, leaving a gap of at least $1 million unaccounted for.
5. Questionable Infrastructure Claims
Senator Twayen dismissed the $1.4 billion infrastructure figure as inflated, suggesting the real cost is closer to $550 million. He further alleged the plant is made of prefabricated materials and could easily be dismantled.
6. Transfer Pricing & Profit Avoidance
The Senator accused AML of manipulating transfer pricing to underreport profits, denying Liberia its fair share of dividends.
Demands from the Senator
Senator Twayen called on the Government of Liberia, especially the Inter-Ministerial Committee on Concessions (IMCC), to enforce the following before any renewal of the MDA is considered:
✓ Pave the Sanniquellie-Yekepa Road as a binding clause.
✓Increase the Social Development Fund for Nimba and affected counties.
✓End container construction and renovate Yekepa’s housing units.
✓Mandate a Liberian in at least one of the top three executive roles.
✓Repay all arrears in scholarship funds and ensure transparency.
✓Implement quarterly audits of AML’s compliance with the MDA.
✓Abolish transfer pricing and enforce accurate financial reporting.
Senator Twayen concluded with a strong warning: “If these demands especially the non-negotiable ones are not met, we will lead the process of resisting any renewal of any kind with AML.”
He called on all Liberians, particularly those in Nimba, to stand together and demand justice, equity, and transparency in the next phase of the country’s mineral development.
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