By: Trokon Wrepue – trokon1992seokin@gmail.com
MONROVIA – World steel giant ArcelorMittal over the last couple years has embarked on an important expansion of its mining and logistics operation in Liberia.
The world leading steel company has squarely directed its focus on Liberia’s rail infrastructure – reconditioning the entire 234 kilometer Buchanan to Yekepa railway.
AML authorities say this broader investment of US$800-million into rail infrastructure is aimed at increasing iron ore production and improving transportation from its main operational site in Yekepa – Buchanan’s seaport for onward export.
Expanding Railway Capacity
AreclorMittal became arguably the first multi million dollars’ investment to touch the shores of Liberia – moments after the country’s brutal civil war that destroyed nearly all fabrics of Liberian society.
Since 2006 up to now, AML has made US$800-million investment into the 243-kilometers heavy haul railway for bulk commodities built to US heavy haul standards.
In 2025, the world’s largest steel company will expand the railway so that it can handle 5 ore wagon trains daily – carrying 120 wagons each.
Authorities say AM has also done full steel sleeper replacement for the entire railway; replacing wooden ties installed in 2010 and will lengthen all nine loops for longer trains and upgrade WabTec rail control system.
Liberia Excellent News Network understands that AML has brought in nine new GE locomotives & 500 additional wagons and purchase under carriages.
From its main operational areas in Yekepa to Buchanan, ArcelorMittal has reinforced the entire railway with rocks for an enlarged Buchanan yard – fully funded by AML’s alone.
Multi-user system
The third user term and ownership of rail and port reverting to the Government of Liberia were incorporated in the first Amendment to the ArcelorMittal Liberia Mineral Development Agreement in 2006 (ratified in 2007).
The steel company in all this has cooperated with the government on discussions with potential third party users of the rail in which it has single handedly invested heavily but has not materialized due to other influences, unrelated to AML.
To date, two entities from neighboring Guinea (SMFG & Sable Mining) have shown interest but there has been no Liberian mine that has requested rail access.
All Mittal has asked over the years is to remain operator of the railway in which it has invested US$800-million.
Investing in Port and Power
In addition to the improvements of the 243-kilometers of railway, AML has begun investing in the port infrastructure of Buchanan by rehabilitating existing berths and developing a material handling terminal equipped with rail car dumper, stacker, declaimers and a ship loader capable of handling up to 10,000 tonnes per hour.
According to the steel company, power generation is also a priority with the development of a 78-megawatt plant at the mine site and a 21-megawatt plant in Buchanan City.
These additional investments will ease the company’s operations, create a lot more jobs and expand the infrastructural look of the affected areas.
As the company anticipates expanding its operations, authorities say 5000 more jobs will be created, and approximately 1,200 permanent positions upon completion.
AML has also committed to employing community members along the railway route to enhance security and reduce theft.
“Ladies and gentlemen, we are blessed in this county with the most beautiful of minerals. It’s going to keep not only this county but Liberia for many, many decades to come. Your children will work on this mine, their children’s children will also work on this mine and we wouldn’t even be halfway through,” Michiel Van Der Merwe said during the company’s 20th year anniversary in Nimba County.
