By: Melvin Flomo
Monrovia, Liberia – Lawmakers representing Grand Cape Mount County are intensifying calls for the Government of Liberia to renegotiate its Mineral Development Agreement (MDA) with Bea Mountain Mining Corporation (BMMC), citing shifting global economic conditions and the need for increased national and community benefits.
The push is being led by Grand Cape Mount County Senator Dabah M. Varpilah, who, in a formal communication dated April 15, urged Senate
Pro-Tempore Nyonblee Karnga-Lawrence to revisit the terms of the existing agreement. Varpilah argued that the current 3% flat royalty rate paid by BMMC is outdated and fails to reflect the sharp rise in global gold prices, which are nearing $4,200 per ounce.
According to the senator, Liberia’s royalty structure lags behind regional counterparts such as Mali, Burkina Faso, and Côte d’Ivoire, where sliding-scale royalties can reach as high as 11%.
“Our state’s share remains linear, allowing the corporation to capture nearly all surplus rents,” Varpilah noted in her communication.
She is proposing the introduction of a progressive royalty system that would adjust in line with global gold prices, enabling Liberia to secure a more equitable share of mining revenues. Varpilah also raised concerns about the 2023 First Amendment to the BMMC agreement, which extended the concession by 25 years without a signature bonus.
She contrasted this with the amended agreement involving ArcelorMittal, which included a $200 million upfront payment, arguing that Liberia failed to negotiate similar benefits from its primary industrial gold producer.
Beyond revenue concerns, Varpilah criticized the company’s limited social impact in host communities, highlighting the lack of essential services such as hospitals, schools, and scholarship opportunities for residents affected by mining operations.
The matter has since been forwarded to the Senate Committees on Lands, Mines and Natural Resources; Ways, Means, Finance and Budget; and Judiciary for further review.
Meanwhile, fellow Cape Mount Senator Simeon B. Taylor has reinforced the call, urging the government to begin renegotiation efforts ahead of the agreement’s scheduled 2028 review.
In a statement issued over the weekend, Taylor emphasized the urgency of addressing community concerns, noting that delaying discussions could hinder much-needed reforms.
“Early and deliberate engagement will ensure that the concerns, expectations, and aspirations of our people are adequately reflected in any future arrangements,” he said.
Taylor is also advocating for the construction of a modern, well-equipped hospital within the concession area, describing it as a critical need given the scale of mining activities in the county.
He further projected that host communities could benefit from direct dividend payments amounting to millions of dollars by the end of 2026, contingent on stable and productive operations.
“The more stable and productive the operations, the greater the potential returns to our people,” Taylor added.
At the same time, the senator called on residents to pursue their demands through peaceful and lawful means, cautioning that disruptions could undermine potential gains.
He pointed to early progress achieved through structured advocacy, including increased opportunities for local businesses and initiatives such as the Clan Fund, and pledged continued engagement with stakeholders to ensure sustained benefits for the people of Cape Mount.
The growing pressure from both senators places the government at a critical juncture as it weighs the balance between attracting foreign investment and ensuring that Liberia derives maximum value from its natural resources.
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