Monrovia – ArcelorMittal Liberia on Wednesday announced the remitting of US$800,000 to Bong, Nimba and Grand Bassa counties for community project to be managed by company.
Henry Karmo, [email protected]
According to the steel company, the amount available for the three counties is US$843,000 and will prioritize specific areas including agriculture, education, roads, bridges, water, health, hygiene, and peace building. These projects will be selected by the people of the affected communities.
Marcus Wleh, Government Relations Officer for AML, said the company will manage contracts for the projects.
“We don’t pretend that this will be problem-free, but the guidelines will be transparent and auditable,” Wleh said.
“The community development fund is the official name for the 20% county social development fund that ArcelorMittal has been authorized by the government of Liberia to disburse to communities. Some people refer to it as the 20%.”
He said the fund is a good example of the “strong partnership” that exists between the private sector and the government and it is geared toward promoting real sustainable development in mining communities.
He also expressed hope that the good experience learned from managing the portion of the county social development fund will bring valuable lessons that Liberia can use.
“We believe that this will help to strengthen our relationship,” he said. “We are hoping that after the launch today we will start rolling out the projects. People in the vicinity of the Iron Ore Mine, people in the vicinity of the port and along the railroad from the mine to the port in Grand Bassa County.”
For his Part, Representative Joseph Somwarbi of Nimba County said the remittance of the 20% county development fund is a clear manifestation of “giving power to the people” which is in consonance with the Pro Poor agenda.
“We are hopeful that the deserving impact will be felt by our people in those affected communities,” he said.
In 2005, ArcelorMittal Liberia signed the first Mineral Development Agreement (MDA) to allow the company to begin mining operations in Yekepa, Nimba county and Buchanan, Grand Bassa county concessions. This agreement was then renegotiated and amended in 2006.
The MDA carries stringent conditions regarding sustainable development and economic, social and environmental investment. Its aim is to ensure that, while foreign companies are able to generate a profit from their investment in the extraction of Liberia’s resources, the country and its citizens benefit as well.
Among other things, it stipulates that ArcelorMittal contribute $3 million a year to the county social development fund for Nimba, Bong and Grand Bassa Counties. This money, which over the 25-year expected life-of-mine will total $75 million, will be used to drive community development projects that will uplift and improve the lives of local people. The agreement also includes commitments to infrastructure development, environmental protection (the dam above is an example of this) and an overall guiding principle of uplifting Liberia and her people.
The company is also required to establish and maintain medical and education facilities in areas of operation, to serve employees, their families and the broader community and to prioritize the employment and development of local Liberians.