It was the first of a number of big investments in Liberias iron ore sector, seen as a trendsetter for investors that followed. Under its agreement with the Government of Liberia, negotiated in 2005 (a re-negotiated contract was signed in 2006), the worlds largest steel producer ArcelorMittal obtained a 25-year concession for iron ore extraction. This involved reopening mines in Nimba County (Tokadeh, Gangra and Yuelliton mines), renovation of Buchanan port, rehabilitation of the 270 kilometre railway from Buchanan to Yekepa and construction of a 250-megawatt power plant to supply power. Shipment of iron ore from the Yekepa mine began in 2011. Involuntary resettlement of people from farms in the mine area was one of the impacts identified, but Nimba is also an environmentally sensitive area. The mines are located in close proximity to the Mount Nimba Strict Nature Reserve and World Heritage Site[2]. Critics say the company has not been sensitive to the socio-economic context of the country. Under its agreement with the Liberian government, ArcelorMittal will pay US$73 million over the 25 year span of the agreement to support socio-economic development in Liberia via the County Social Development Fund (CSDF). This involves the counties of Nimba, Bong and Grand Bassa. Controversy has broken out over the fund. Friends of the Earth/SDI filed a complaint with the OECD, alleging that fund money has been spent on projects that are not benefitting the communities. There have also been complaints about labour practices, with many jobs available through contractors, who offer poor pay and little in the way of benefits. |