LIBERIA: China Union Refutes Bankruptcy Reports

The Management of China Union Investment (Liberia) in Bong County has refuted reports that it has gone bankrupt and plans to close down mining operations.

Public Relations Manager Allen Fu told the Liberia News Agency in Bong Mines Thursday that the company is still financially strong and viable and has not reached the stage of bankruptcy.

The company’s statement comes in the wake of reports that China Union has gone bankrupt and that it was selling its assets to other foreign companies that have expressed interest in taking over the mining concession.

China Union is the second largest mining company in the country with an investment portfolio of US$2.6 billion next to Arcelor Mittal located in Yekepa, Nimba County.

Fu said due to fluctuation in the price of iron on the world market between US$45 and US$50 per metric ton, the company is losing heavily on every ton produced.
 
He explained that on each ton produced by China Union, it sustains a loss of US$27, noting that this was seriously affecting its mining operations.

Fu disclosed that this has led the company to readjust its production from 90 thousand tons per month to as low as 30 thousand tons to prevent it from continuing to sustain the losses it has been experiencing.

He said under its readjustment policy that is currently in effect, China Union will also reduce its Chinese expatriate staff.

China Union Investment currently has in its employ about 422 Liberians, Fu said, noting that they will not be affected by the readjustment policy.

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