Monrovia-– Last week’s violence claimed at least two lives, leading to the arrest of 23 rioters who staged a violent protest in Western Liberia—Grand Cape Mount County, the concession area of Bea Mountain Mining Corporation, particularly in the vicinity of Kinjor and Matambo Towns
By Rodney D. Sieh, [email protected]
Rioters accused the company of refusing to live up to its mineral Development Agreement with Liberia. However, an investigation by FrontPageAfrica has found that a lot of underlying political and economic factors may have contributed to the violence. In fact, the Liberian National Police in a briefing informed the public that the violence across the concession area was incited by a Cape Mount lawmaker.
Origin of a Crisis
In September 2013, Bea Mountain Mining Corporation entered into a Mineral Development Agreement with the Government of Liberia. Under the MDA, the Company is permitted to conduct exploration and mining activities with 537 square kilometers. However, Section 10.2 of the MDA required, that if the company intends to conduct its activities on private property, the Company must negotiate with private landowners.
While the other sister company of Bea Mountain under the MNG network, MNG Gold Liberia has a 25-year Mineral development Agreement/Contract (MDA/MDC) with the Government of Liberia which was signed four years ago leading to the establishment of the Kokoya Goldfield.
Bea Mountain Mining Corporation, owned by Turkish Billionaire, Mehmet Nazif Günal, through his MNG enterprise, operates the New Liberty Gold Mine and other satellite sites in Western Liberia, and the MNG-Gold Liberia mining operations in Bong County.
The company recently benefited from a contract between Bea Mountain Mining Corporation (BMMC), a wholly owned subsidiary of Aureus Mining. As a result of the deal, MonuRent supplier contracts, was novated to MNG Gold-owned Liberian company Atmaca Services – which owns 55% of Aureus.
As part of the agreement with MonuRent, Atmaca Services will pay US$15.4 million in cash to MonuRent to take ownership of the mining equipment; US$7.1 million in cash for the inventory currently on site at New Liberty; US$7.9 million in cash for invoiced receivables; about US$2.5 million in cash for future invoiced receivables incurred by BMMC during July and August 2016, (together the sale assets); and US$4.5 million in cash as a contract novation fee.
MNG’s operation in Liberia offers a lot of benefits. The Kokoya Gold project, for example, is in an advanced phase and will deliver production of 360,000 tonnes per annum (tpa) of gold ore and the final product will be gold bullion through standard processing technology.
The major mine infrastructure includes open pits, ore stockpiles, waste rock dumps, processing plant, tailings management facility, mine camp, power generation facility and possibly a water storage facility. Since the acquisition of the Kokoya Gold Project in Bong County, MNG has invested more than US$15 million in the development of the mine, including the signing of agreements for the purchase of the main mining equipment, trucks and processing plants. Some of the equipment has already delivered to Liberia, some further equipment is now in transit and further items are being manufactured.
MNG has generated additional revenue for the government through the payment of fees and taxes since the acquisition of the Kokoya Gold Project
Last week’s protest started in Matambo, an area within the Company MDA area, where the company has engaged in exploration activities for gold. In Matambo, the deposit is now close to the village thus requiring the relocation of the village.
In early 2023 the company entered into a land lease agreement with the Bangoma community for 3000 acres of land in Matambo. Prior to entering the lease, the company facilitated the survey of the Bangoma land and financed the processing of the customary deed. The lease is for five years renewable for another five (5) years. As part of the consideration the Parties agreed to a relocation plan.
FrontPageAfrica has now learned that contrary to the lease agreement, the community asked the company to purchase additional land from another town to carry out the relocation. All documents were signed. The community was represented by their lawyer, Cllr. Sinufu Sheriff. The entire process (determination of the relocation site, houses designs and compensation) was monitored and approved by the EPA, MIA, MME, LLA, and NBC. There are photos and or documents available to prove the exhaustive process carried out involving community representation and participation.
Fast forward, after the elections October 2023 almost all the members of the Legislators from Cape Mount were replaced. In other words, all the members who went to elections lost. The new lawmakers, according to multiple sources, have never met with the company in spite of all efforts made by the company to reach out to them.
Representative Mohammed Dosii and other lawmakers including Senator Dabbah Vaplah approached the communities and ignited them to raise issues with the company. In fact, they are on record telling the people that the Company’s operations must stop until they meet several demands.
Ironically, officials at BMMC say, they received no petition or grievance from the community prior to the violent protest in which at least three persons died.
Earlier this week, the Chairman of the Senate Committee on Lands, Mines, Energy and Natural Resources, Senator Simeon Taylor, pointed blame between aggrieved citizens and police officers assigned at the Bea Mountain Mining Company (BMMC) on alleged inciting comments made by his kinsman Representative Mohammed Dosii of the governing Unity Party (UP).
In his communication dated February 29 and addressed to Senate Pro Tempore Nyonblee Karnga Lawrence, Senator Taylor claimed that Representative Dosii was on February 24, 2024, seen in a gathering in King Jor, urging and rallying the citizens of Grand Cape Mount County to engage in a county-wide protest against the company.
“In the words of Hon. Dosii, he pleaded with the citizens to stage a protest that will bring all activities of the company to a standstill. Regrettably so, there is a violent protest ongoing in King Jor at the moment, just days after the call. Madam Pro Temp and distinguished Senators, I urge this body to take this issue on the part of Hon. Dosii very seriously, as his actions have led to the alleged loss of lives and wanton destruction of properties.”
He stressed the need for the Senate to liaise with the House of Representatives to have his kinsman show cause for his action in inciting the citizens to engage into a protest action that resulted to the loss of live and the damaged of properties worth thousands of United States dollars.
The violence at Kinjor is just the latest in a wave of recent attacks on concessionaires. In July 2014, violent demonstration against the operations of the steel giant Arcelor Mittal Liberia led to the destruction of properties in several towns including Zolowee, Gpaba, Mehkinto and Sehkimpa. A year later, in May 2015, residents engaged in mayhem, looting and destruction on the Golden Veroleum Oil Plantation in Butaw, Sinoe County.
The protest started at Matambo where the community changed their desire. The primary reason for the protest, among other things, is the alleged delay in the relocation process (which was clarified by the company in several stakeholder meetings.
For obvious reasons, sources tell FrontPageAfrica, lawmaker Dosii moved to Kinjor and other parts of the Cape Mount to transport violent protestors – who destroyed several properties and other valuables owned by BMMC. Dosii is seen on recording inciting the people against the company and other the Liberians who worked for the company in Cape Mount.
The protest started and continue to be violent. Several properties were burned or damaged by her people.
Bea Mountain currently has in its employ 3,500 Liberians. MNG has invested nearly a billion dollars since its inception in Liberia.
Today, gold production, transport and sales processes are transparent. The Liberia Revenue Authority and the Ministry of Mines & Energy and other government related entities are involved at all times (from the mine to the transport out of the Liberia). All gold shipped out of the country go through the Roberts International A.
In the history of Liberia, the company runs the first underground mining operations. Thus, the lack of qualified manpower is a challenge for the company and its operations. In such cases, the company usually explains to MOL and present circumstances on a case-by-case basis upon which work permits are duly issued.
Under the MDA Section 15, the Company is responsible for providing payment representing development fund. The fund amount has summed up to at least 1.4 million but still the people have not been able access the money due to confusion between the local leaders.
Because of the failure of this fund, and the need to keep the host communities stable, BMMC established a Clan Development Fund. Each clan of the host communities receives 150k per annum (450) and 75k per annum for Matambo (because no mining has started in Matambo). These amounts have also been regularly paid for two years now. Initially, this 150k was not based on any obligations in the MDA but MOU that the company voluntarily signed with each clan.
The violence at Kinjor is just the latest in a wave of recent attacks on concessionaires.
In July 2014, violent demonstration against the operations of the steel giant Arcelor Mittal Liberia led to the destruction of properties in several towns including Zolowee, Gpaba, Mehkinto and Sehkimpa.
A year later, in May 2015, residents engaged in mayhem, looting and destruction on the Golden Veroleum Oil Plantation in Butaw, Sinoe County.
In 2016, the previous concessionaire, Sime Darby endured similar threats, intimidations and violence. It wasn’t till after the damage had been done that resident in the Community Sime Darby Liberia operated in Grand cape Mount County, offered apologies to the company for the series of protests.
In most of these instances, the direct and associated damage done to Arcelor Mittal facilities in Nimba County and the incidents in Cape Mount, proved to be more than an attack on a private companies or concessions but rather attacks on the economy and the country’s immediate future.
