ArcelorMittal and the Liberian government have signed a new Mineral Development Agreement that extends the company’s existing concession to 2050 and grants an option to renew for an additional 25 years. The deal includes a $200 million payment for mining rights and reserved rail capacity, and it brings the total investment in Liberia to $3.5 billion, of which $1.8 billion is earmarked for a new expansion project.
Under the new terms, ArcelorMittal will lift iron‑ore production from the current 5 million tonnes per annum to 20 million tonnes in 2026, with the possibility of expanding to 30 million tonnes if feasibility studies confirm the economics. The jump represents a four‑fold increase in output and positions the company to capture a larger share of West Africa’s iron‑ore market, while providing a steady supply of high‑grade ore for its global steel mills.
The agreement also commits to significant infrastructure upgrades: a new rail corridor from Tokadeh to Buchanan, upgrades to the Buchanan port, and the construction of two power plants to support the expanded operation. The rail corridor is designed for multi‑user access, but other users must fund the expansion costs, raising regulatory concerns that the privately drafted rail rules could become binding national policy.
Liberia stands to benefit substantially from the deal. The expansion will support roughly 8,000 direct and indirect jobs, increase royalties and tax revenues, and boost local procurement. The $200 million payment to the government is an immediate fiscal benefit, and the $3.5 billion investment is the largest foreign‑direct‑investment in Liberia’s post‑war economy.
President Joseph Boakai praised the agreement as a “defining moment” for Liberia, highlighting the job creation and economic growth it will bring. ArcelorMittal Executive Chairman Lakshmi Mittal emphasized the strategic importance of securing low‑cost, integrated raw‑material sources to support the company’s long‑term EBITDA growth plan. The company acknowledges headwinds such as commodity price volatility, execution challenges for large‑scale infrastructure projects, and regulatory uncertainties surrounding rail access.
The expansion’s viability is tied to a recovery in iron‑ore prices and demand from China, while competition from projects such as Guinea’s Simandou could pose a risk. Nonetheless, the agreement signals ArcelorMittal’s confidence in the long‑term outlook for iron‑ore demand and its commitment to expanding its resource base in a geopolitically stable region.
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