Liberia Advances Multiuser Rail Policy by Granting Ivanhoe Atlantic Access for ESIA

The Government of Liberia has requested ArcelorMittal to grant Ivanhoe Atlantic access for an Environmental and Social Impact Assessment along the Yekepa-Buchanan railway. This move signifies progress in implementing the multiuser rail policy aimed at enabling access for multiple companies, enhancing economic benefits and regulatory compliance. The ESIA is crucial for assessing environmental impacts related to mining activities.

The government of Liberia has formally requested ArcelorMittal Liberia (AML) to allow Ivanhoe Atlantic access for conducting an Environmental and Social Impact Assessment (ESIA) along the Yekepa-Buchanan railway corridor. This significant action, confirmed through communications from the Ministry of Mines and Energy and the Ministry of Transport, marks progress in implementing Liberia’s multiuser rail policy designed to benefit multiple stakeholders economically and ensure compliance with regulatory frameworks.

The letters issued to AML and its CEO Michiel van der Merwe state that Ivanhoe Atlantic’s assessment is scheduled for March 17–21, 2025. According to the Ministry of Mines and Energy, Ivanhoe Atlantic, as a licensed entity in Liberia, has a legal right to conduct the ESIA in line with the Mineral Development Agreement of 2005, which is essential for its upcoming mining and transportation operations.

Additionally, the Ministry of Transport supports this requirement, highlighting that the Environmental Protection Agency has mandated the ESIA as a necessary step for Ivanhoe Atlantic’s activities. The letter also clarifies that this assessment will not interfere with AML’s current operations, with oversight assigned to Mr. Daniel Kpehe Bolay, Assistant Director of Rail at the Ministry.

Liberia’s Yekepa-Buchanan railway, a 360-kilometer route vital for iron ore exportation, has been under AML’s exclusive control, restricting access to other mining companies. However, with the government’s adoption of a multiuser rail policy, this situation is anticipated to change, allowing for increased revenue generation and broader access along the railway.

Authorizing Ivanhoe Atlantic’s ESIA is a crucial shift from policy discussion to tangible implementation. This step indicates preparations for allowing multiple companies to utilize the railway, particularly as Ivanhoe Atlantic aims to transport 30 million tonnes of iron ore annually once operational.

An ESIA is an essential study that evaluates potential environmental and social impacts for significant industrial projects. It assesses community effects, environmental risks such as pollution, and examines railway infrastructure capabilities to accommodate increased usage. This study is particularly important for communities along the corridor, which may experience job creation and infrastructure enhancement from a multiuser system.

AML faces a complex situation, as the company’s opposition to the multiuser rail model has been consistent. However, the current legal framework allows for the ESIA to proceed without AML’s consent under the existing Mineral Development Agreement. This development illustrates the government’s commitment to enforcing its national infrastructure policies.

The timing of this initiative is crucial for promoting investor confidence in Liberia’s mining sector. The monopoly held by AML has deterred potential investors, but the progress with Ivanhoe Atlantic’s ESIA indicates that the government is serious about creating a competitive business environment, thereby attracting more investments into mining projects.

Moving forward, AML must decide whether to comply with the government’s directive or resist, which could further escalate tensions. The government’s active oversight suggests that AML’s ability to obstruct the ESIA process may be limited. Concurrently, Ivanhoe Atlantic is poised to begin feasibility studies for a new rail corridor that could diverge reliance on the existing infrastructure.

Overall, the government’s push for Ivanhoe Atlantic’s ESIA is a significant stride in reshaping Liberia’s economic landscape. This action demonstrates a shift towards a multiuser rail policy wherein national infrastructure will serve a variety of stakeholders. Investors should note that the vision for an open and competitive business environment is steadily materializing in Liberia.

In summary, the Government of Liberia’s request for AML to grant access to Ivanhoe Atlantic for an Environmental and Social Impact Assessment signifies a pivotal advancement in transitioning to a multiuser rail policy. The directive underscores the government’s commitment to regulatory adherence and the potential for increased economic benefit for various stakeholders. The decision faced by AML in response to this initiative will be critical in shaping the future of Liberia’s rail infrastructure and its broader economic landscape.

Original Source: www.liberianobserver.com