ArcelorMittal Liberia responds to lawmakers’ inquest on MDA violations

The management of ArcelorMittal said that it is still committed to implementing the Mineral Development Agreement signed with the Government of Liberia back in 2006, after been accused of grossly violating the Mineral Development Agreement, MDA. The steel company was responding to the House of Representatives’ allegations.

In 2018, the Joint Committee on Lands, Mines, Energy, and Environment along with the committees on Investment and concessions and Health following an ‘intensive’ investigation of the company’s operations in the country, found grossly violating of the MDA. The MDA was signed in 2005 and amended in 2006, with a focus on sustainable development and economic, social and environmental investment for the company and citizens. But there have been increasing allegations of violations of the agreement by the steel giant.

And the lawmakers’ recent probe was prompted by a complaint filed to the house plenary by Rep. Joseph N Somwarbi (Nimba District #3), who asked the body to investigate alleged violations. Among other things, the company was accused of not rehabilitating some of the old facilities including housing, water treatment plants, railways, and hospitals.

Making specific reference to the Gangra mines in Nimba County, the committee said AML failed to build processor or washing plant as enshrined in the MDA.

The MDA states that a concentrator or processor should be built within two years after the ratification of the agreement. The processor is meant to enhance or maximize the production of iron ores. The lawmakers were concerned that the steel giant is not maximizing production; something which they fear is at the detriment of the country’s already struggling economy.

In its recommendations adopted by plenary in 2018, the committee among other things called for a complete concession audit and a total review of the MDA. They recommended that all redundant workers, who were issued letters by AML Management with the hope of reinstating them when conditions improve, be unconditionally reinstated.

Stated the committee: “Cases of illegal dismissal in which due diligence has been done with all required due processes, those employees should be reinstated immediately. Those employees who inherited medical problems as a result of the job and have now be considered physically incapable based on medical advice should be appropriately catered for and compensated.”

The committee also mandated the company to rehabilitate the remaining railroad from Tokadeh to Yekepa and existing houses and other structures including workshops, water treatment plant, and the power to ensure appropriate accommodations with available safe drinking pipeborne water and effective power supply in all the AML operational communities in Nimba, Bong, and Bassa within six months.

The bridges linking Bong County to Grand Bassa County and Bong County to Nimba County should be reconstructed to Public Works standard within one year and called for a guaranteed agreement between the private landowners and ArcelorMittal within the three counties.

The committee also called for the renovation of all clinics and hospital, which it says should be staff and equipped with the requisite medicines and medical supplies within six months.

Source : Strategic Research Institute, SteelGuru

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About Cholo Brooks 8793 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.