By Amos Harris
Monrovia, Liberia – Senator Nyan Twayen has formally called on the Liberian Senate to open a full-scale investigation into global steel giant ArcelorMittal’s reported $1.4 billion investment in an iron ore processing plant located in Nimba County. The Senator, a known advocate for transparency and good governance, suspects that the reported cost of the plant may have been deliberately inflated, thereby depriving the Liberian state and its people of much-needed revenue from a company that has long operated in the country.
In a communication submitted to Senate plenary, Senator Twayen did not mince words. He expressed serious concerns that the declared cost of the processing plant does not reflect its actual construction value, which, if proven, could further erode public trust in multinational corporations operating in Liberia and shed light on why the country has yet to reap substantial financial benefits from ArcelorMittal’s operations, nearly two decades after the company began mining in Liberia.
“For twenty years, ArcelorMittal has declared losses instead of profits,” Senator Twayen said in his letter to the plenary. “An inflated or overstated investment swallows profit and deprives Liberia of receiving dividends – a case with us and ArcelorMittal for 20 years now. We will get to the bottom of this one.”
The Senator’s concerns are rooted in a broader pattern that has plagued Liberia’s extractive sector for years: multinational concessionaires investing billions of dollars on paper, while ordinary citizens and even the government fail to see tangible benefits. This growing frustration has become a rallying cry among civil society organizations, lawmakers, and affected communities alike, especially in areas like Nimba County, which hosts a significant portion of ArcelorMittal’s mining operations.
Senator Twayen, elected on a pro-reform platform, has emerged as one of the most vocal legislators pushing for accountability in Liberia’s natural resources sector. His latest communication adds momentum to an already growing list of concerns that several stakeholders have voiced over the years, alleging that ArcelorMittal has used complex accounting methods and ambiguous investment declarations to avoid paying dividends or higher taxes.
At the heart of the Senator’s communication is ArcelorMittal’s announcement of a $1.4 billion investment to expand its mining and processing operations in Liberia, including the construction of a state-of-the-art iron ore concentrator plant in Yekepa, Nimba County. The investment, announced in 2021, was hailed by the company as a demonstration of its long-term commitment to Liberia. According to ArcelorMittal, the project will transform its operations in the country from a purely DSO (Direct Shipping Ore) export venture into a value-added iron ore processing operation. The company has stated that the new plant, when completed, will significantly increase production capacity, create jobs, and generate long-term economic benefits for the country.
However, Senator Twayen isn’t convinced; he argues that the company’s actual expenditures may fall far short of the declared amount. If the company has indeed exaggerated the cost of its investment, he says, the implications are enormous. Overstated investments allow companies to report lower profits on their books, which, in turn, enables them to avoid paying taxes and dividends to the host government.
“Let us be clear: this is not an attack on investment or on ArcelorMittal as a company,” Senator Twayen stated during a brief press engagement following the submission of his communication. “This is about ensuring that Liberia gets its fair share. We cannot continue to allow companies to operate in our country, extract our resources, and then use creative accounting to tell us they are not making profits.”
Following Senator Twayen’s call, the Senate is expected to instruct its relevant committees – likely including those on Lands, Mines and Energy; Public Accounts and Audits; and Investment and Concessions – to launch an inquiry into the matter. The committees will be tasked with reviewing ArcelorMittal’s reported financial records, cost breakdowns for the plant, and any supporting documentation related to the $1.4 billion project.
Members of the Senate have expressed cautious support for the investigation, with several senators informally noting that this probe could provide a rare opportunity to assess how well or poorly the government has negotiated its mineral resource agreements over the years. Senator Abraham Darius Dillon of Montserrado County said the issue warrants careful scrutiny. “We’ve had too many instances in this country where contracts are signed with lots of fanfare, only for us to discover later that we were shortchanged,” he said. “If there are credible concerns that ArcelorMittal has inflated the cost of its investment, then we must investigate.”
Meanwhile, the Senate’s secretariat has confirmed that it has received Senator Twayen’s communication and that it will be placed on the agenda for formal plenary debate in the coming sessions.
ArcelorMittal’s relationship with Liberia dates back to 2005, when the company signed a mineral development agreement (MDA) with the transitional government following the end of the country’s brutal civil war. That initial agreement, which was amended in 2007 and again in 2013, gave ArcelorMittal the rights to mine iron ore in Yekepa and Buchanan and to use the railway and port infrastructure connecting the two towns.
While the agreement was hailed at the time as a symbol of Liberia’s post-war recovery, it has since been dogged by controversy. Critics say the company has failed to fully meet its social obligations, especially in areas such as housing, education, and local employment. Community members in Yekepa have repeatedly complained of poor living conditions and unfulfilled promises made during the signing of the original deal.
In 2021, ArcelorMittal announced the third amendment of its MDA, which included the $1.4 billion investment. The agreement promised significant upgrades to the rail and port infrastructure, the construction of a new concentrator plant, and increased local employment. However, the deal was never ratified by the Legislature due to concerns over transparency, competition, and its impact on other potential investors such as HPX, which is also eyeing Liberia’s rail infrastructure. The delay in ratifying the agreement has become a flashpoint in the debate over Liberia’s future in the iron ore industry.
Senator Twayen’s move has sparked mixed reactions among key stakeholders. Civil society groups have welcomed the call for investigation. The Center for Transparency and Accountability in Liberia (CENTAL), a leading anti-corruption organization, praised the Senator for taking a bold stand and called on the Senate to treat the issue with urgency.
“We are fully in support of Senator Twayen’s request for a full audit of ArcelorMittal’s investment claims,” said Anderson Miamen, CENTAL’s Executive Director. “Liberians deserve to know how much has really been invested, and whether this matches the physical infrastructure on the ground. Transparency is not optional – it is a requirement for sustainable development.”
At the same time, business groups have cautioned against rushing to judgment. The Liberia Chamber of Commerce urged lawmakers to engage with ArcelorMittal in a constructive dialogue to avoid creating an unfriendly business climate. “There is no problem with asking questions,” the Chamber noted in a brief statement, “but we must ensure that our approach does not discourage current or future investors. Liberia’s economy needs both accountability and investment.”
Since Senator Twayen’s letter became public, ArcelorMittal Liberia has defended its investment figures, stating that the $1.4 billion cost reflects the full scope of work required to modernize and expand its operations. “The project includes the construction of a new iron ore concentrator, extensive upgrades to rail and port infrastructure, procurement of mining equipment and costs associated with environmental and community engagement obligations,” the statement read. “All financial disclosures have been made in accordance with Liberian law and international standards.” The company also reiterated its commitment to Liberia, noting that its operations currently employ over 3,000 Liberians and that the expansion project will create thousands more jobs directly and indirectly.
Despite this, public skepticism remains high, with many Liberians arguing that after 20 years of operation, the company’s inability to pay dividends to the government is a clear indicator that something is wrong.
Senator Twayen’s call for a probe into ArcelorMittal’s investment could become a landmark moment in Liberia’s push for transparency in the natural resources sector. If the Senate proceeds with a full investigation and finds credible evidence of inflated costs, it could trigger legal and financial consequences for the company and even prompt a renegotiation of its mineral development agreement. On the other hand, if the investigation clears ArcelorMittal of any wrongdoing, it may help rebuild trust and allow the company to proceed with its expansion plans.
Either way, Liberians will be watching closely. As Senator Twayen concluded in his letter, “We owe it to the people of Nimba, to all Liberians, and to future generations to ensure that our resources are not only extracted, but that they benefit the nation in real, measurable ways. Accountability is not negotiable.”
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