MONROVIA — ArcelorMittal Liberia and the Government of Liberia on Monday began laying the groundwork for the implementation of a new Community Development Fund established under the company’s Third Mineral Development Agreement, with officials stressing the need for the fund to translate into tangible benefits for communities affected by the mining operation.
The high-level consultation, held at the Ministry of Mines and Energy, focused on the proposed framework for a Community Development Committee that will oversee the affairs and implementation of the special community development funds to be provided by ArcelorMittal Liberia.
The meeting brought together representatives of the leaderships of Nimba, Bong and Grand Bassa counties, along with officials from the Ministry of Finance and Development Planning, the Ministry of Local Government, the Ministry of Mines and Energy and ArcelorMittal Liberia.
Under the Third Mineral Development Agreement, AML is required to make an annual contribution of US$5 million to a Community Development Fund intended to support social and economic development in communities affected by its operations.
For the government, Monday’s consultation was an important step toward ensuring that the fund is aligned with Liberia’s broader decentralization and development agenda.
Minister of Local Government Francis Nyumalin said the government’s primary concern is ensuring that decisions surrounding the fund serve the interests of communities.
“Whatever we do must be in the interest of our people, especially the people in the counties,” Nyumalin said.
He welcomed the establishment of the fund, describing it as an opportunity to direct additional resources toward development in Liberia’s counties.
“We are happy that something is set aside to develop the counties and our people, and I think this is part of the implementation of the MDA,” he said.
Nyumalin also thanked the Minister of Mines and Energy for convening the consultation, which brought together national and county-level stakeholders to begin discussions on the mechanism for managing the fund.
Government seeks alignment with development plans
The Ministry of Finance and Development Planning said its participation was intended to ensure that projects financed through the fund are consistent with national development priorities and county-level plans.
Anthony Myers, Deputy Minister for Fiscal Affairs at the Ministry of Finance and Development Planning, said the ministry’s role in the process is largely connected to development planning and public investment.
He explained that MFDP participated through its Public Investment Unit because the fund will finance development interventions at the community and county levels.
Myers said the government’s development strategy includes a local component known as the County Development Agenda, which identifies development interventions across communities.
He also linked the process to the government’s broader decentralization program being led by the Ministry of Local Government.
“We take this seriously and will be a part of this as long as it lasts to ensure that projects selected from the counties are a reflection of the people in line with the government’s development agenda,” Myers said.
His comments underscored the government’s intention to connect projects financed through the AML fund with existing county development priorities rather than treating the fund as a stand-alone initiative.
Mines Minister calls for proactive approach
Minister of Mines and Energy R. Makinokey Tingba said the government wants to take a more proactive approach to managing its relationship with mining companies and ensuring that commitments made under concession agreements are implemented.
“I want to thank AML and the counties for the meeting,” Tingbasaid.
“We want to be very proactive with the concessionaires.”
The minister acknowledged that Liberia has experienced delays and shortcomings in the implementation of concession-related commitments in the past.
“We had delinquencies with implementation of concessions in the past, and at this time we want to be fully focused so that our people can benefit,” he said.
Tingba also urged ArcelorMittal Liberia to go beyond traditional community projects and consider programs that can provide alternative sources of income for people living in concession areas.
In particular, he called for the company to consider supporting agricultural and poultry activities.
“We want AML to engage into some form of alternative livelihood program where our people in the concession areas can do some form of poultry and agriculture production, where people who are not working with the company can begin to do some work and earn some income,” the minister said.
His proposal reflects a broader concern over the economic dependence of communities on employment opportunities directly provided by mining companies.
AML says committee will help drive implementation
For ArcelorMittal Liberia, the consultation provided an opportunity for the government and the company to begin identifying the representatives who will serve on the Community Development Fund Committee.
Marcus Wleh, AML’s Head of Sustainability and External Relations, said the committee would play an important role in translating the provisions of the Third MDA into development interventions for affected communities.
According to Wleh, the consultation will allow both the government and the company to designate individuals who will sit on the committee and help guide implementation of the Community Development Fund.
He said the process is intended to create a structure through which the fund can be implemented in a manner that benefits the communities for which it was established.
Wleh said ArcelorMittal Liberia remains committed to empowering communities through programs developed in partnership with relevant stakeholders.
“ArcelorMittal Liberia is committed to empowering its communities through mutually inclusive programs,” Wlehsaid.
The consultation comes as the Third MDA introduces a significantly expanded financial commitment to community development.
The annual US$5 million Community Development Fundrepresents a substantial increase over the previous arrangement under which AML contributed US$3 million annually to the County Social Development Fund.
The new arrangement puts greater emphasis on how the money will be governed, allocated and translated into projects at the community level.
With the fund covering communities in Nimba, Bong and Grand Bassa, questions are expected to center on the criteria for determining beneficiary communities, the process for selecting projects, the role of county authorities and local communities, and mechanisms for transparency and accountability.
Monday’s consultation therefore marked the beginning of what government and company officials described as an important process: creating the institutional framework that will determine how millions of dollars in annual community-development resources are ultimately converted into roads, schools, health facilities, livelihoods and other priorities identified by communities affected by AML’s operations.
For the government, the challenge is to ensure that the fund complements national and county development plans. For AML, the task will be to demonstrate that the increased financial commitment under the Third MDA produces measurable and sustainable benefits for the communities hosting its operations.
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