Monrovia – When Gao Feng AKA Barry enters a room at the Ministry of Mines & Energy, top officials Minister, Deputy and Assistants, fall on their knees to greet him. The power that comes with his presence is a key reason many investors interested in the mining business have lost interest in doing business in Liberia.
By Rodney D. Sieh, [email protected]
Perennial issues in the mining sector are key reason President Joseph Boakai made it a priority immediately after winning the presidency, telling Reuters in an interview that one of the first steps he’s looking to tackle is the mining sector which has been buoyed mostly by corruption and lack of basic services. The President is aware that Liberians have not benefited from the mining sector, despite the country’s rich mineral reserves, including diamonds, gold, iron ore and timber. “To be frank with you, the mining sector has been one of the problems in this country. I have seen our resources exploited and the life of the people remains the worse,” Boakai said, in an interview with Reuters toward the end of 2023.
The President left the door open that a few mining concessions could be revisited. Several companies operate in Liberia’s mining sector, including ArcelorMittal and Bao Chico Resources in iron ore mining concessions, Bea Mountain Mining and Avesoro Resources, which operates Liberia’s first commercial gold mine.
Gao Feng AKA Barry Strikes Fear
Even now, Gao Feng AKA Barry’s influence strikes fear amongst subordinates including former minister at the MME who has become notorious for revoking license to satisfy Gao Feng AKA Barry. “He takes care of all of them, financially,” a former staffer at the ministry told FrontPageAfrica recently.
This was clearly the case when officials working under Gao Feng AKA Barry’s command revoked the exploration licenses of NEO Global Mines & Minerals Inc. and within 29 minutes of awarded the exploration license to Scott Investment Incorporation.
When NEO Global Mines & Minerals Inc. complained to MME about Gao Feng AKA Barry’s influence, “the Real Minister” allegedly paid former ministers US$350,000.00 to issue the said Two (2) Prospecting Licenses to Urban & Rural Services Inc. overlapped NEO Global Mines & Minerals Inc. Exploration License; and Gao Feng AKA Barry, allegedly paid US$150,000.00 per month to manipulate some former ministers at MME to protect Urban & Rural Services Inc. from mining anywhere within NEO Global Mines & Minerals Inc.
Clear Breach of the Mining Law
Truly, Gao Feng AKA Barry “the Real Minister” in cohort with his former subordinate ministers at MME conspired to use Scott Investment Incorporation to apply for the same area where MME already granted to NEO Global Mines & Minerals Inc. for Exploration License, violated Mineral and Mining Act 2000 “Section 5.3. (a). that the area shall not already be subject to a valid Mineral Right granted to another person.” and “Section 6.7. (a). Limitations. A Mining License shall not be issued with respect to any area that is already subject to a valid Mineral Right granted to another person.”
Surprisingly, a termination letter was issued by the Former Ministers on November 20, 2023, non-service was done and recorded at 15:44 November 21, 2023, right after 29 minutes at 16:13 November 21, 2023, Scott Investment Incorporation Exploration License application for the same place was processed and approved by the former ministers, violated Mineral and Mining Act 2000 “Section 9.15.
Effectiveness of Revocation
Revocation by Government shall take effect two months after notice thereof has been sent to the Holder of a Mineral Right at the last registered address of such Holder with the Ministry.” and Exploration Regulation 2010 “Section17.2.
Termination by the Minister
The Minister may give notice of termination of a License (a “Termination Notice”) at any time that a License Termination Event has occurred and is continuing, setting forth in such notice a summary in reasonable detail of the facts relied upon to establish the occurrence and continuation of a License Termination Event. Such notice must include a statement of the right of the Licensee to request a hearing to be held to contest the assertion that a License Termination Event has occurred.
Pursuant to Section 9.15 of the Mining Law a termination under this Section is effective two months after the Termination Notice is sent to the Licensee, subject to automatic stay during the pendency of any hearing or judicial appeal referred to below in Section 18.
If the Minister does not receive a request for a hearing under Section 18 within 30 days of the date on which the Licensee received the notice of termination, the Licensee will be deemed to have waived its rights to such hearing, and the License in question will then terminate at noon on the date provided in the preceding sentence; otherwise termination is stayed until the conclusion of the hearing and any subsequent judicial appeal.”
Besides, the Termination Letter was not even served to NEO Global Mines & Minerals Inc. and not sent default notice as required by law.
False Claims & Manipulations
The claims of the termination letter made was also false and misleading: “and in line with section 9.14 (b) of the New Minerals and Mining Laws of 2000.” in keeping with Mineral and Mining Act 2000 “Section 9.14. (b). Where the Operator shall fall to carry out Exploration in accordance with a proposed Exploration plan, cease Exploration for a period of twelve consecutive months when subject to an Exploration License” NEO Global Mines & Minerals Inc.
Exploration License issued on October 31, 2022, the Termination Letter issued on November 20, 2023. The question is, how is that possible NEO Global Mines & Minerals Inc. could cease Exploration for 12 month and the license is only issued the same 12 month ago?
Moreover, in keeping with Mineral and Mining Act 2000 “Section 9.14. (c). where violation by the Operator of a material provision of this Law or the Regulations, or of the terms of a Mineral Development Agreement, and/or the failure to cure any such material violation within sixty (60) days after notice, or such longer period as Minister may allow.” there is no such notice serve to NEO Global Mines & Minerals Inc. our law does not permit such illegality for that would spell doom to our civilized social order.
“In view of the above counts, we regret to inform you that your license (MEL8000522) has been terminated according to Sec. 3.3 (a) End of License term of the Mineral Exploration Regulations of Liberia. This provision amongst others clearly states that “Subject to the following sentence, License automatically expires at the end of the Initial Term or the Extended Term, as the case maybe, without requirement of action or notification by the Minister….” in keeping with the Exploration Regulation 2010: “Section 3.1.
The initial term of a License (its “Initial Term”) commences on its Effective Date and, unless terminated sooner pursuant to Section 4.5(b), 17 or 20, ends on the third anniversary of its Effective Date (or such later time as is then provided by the Mining Law) subject to surrender pursuant to Section 3.2.” the question is, NEO Global Mines & Minerals Inc. Exploration License expire on October 13, 2025, how is that possible the Termination Letter can fraudulently claimed the said license already expired?
CENTAL: ‘System Exploited for Personal Gains’
Corruption within the Ministry of Mines & and Energy has been lingering for years. A 2017 research conducted by CENTAL as part of Transparency International’s Mining for Sustainable Development (M4SD) Program, analyzed and proffer recommendations to address corruption risks and vulnerabilities in processes leading to the award of mining licenses, permits and contracts in Liberia.
The overarching objective was to ensure transparency and accountability in the licensing process to boost government revenues and address long-standing issues of corruption and bad governance that have undermined effectiveness of the sector.
In the report, CENTAL reported widespread corruption across the entire mining value chain, especially the licensing and concession granting processes. “Collusion, extortion, facilitation payments/ bribery, manipulation, abuse of power and vested interest are major corruption risks and vulnerabilities identified. This is particularly common among public officials and powerful industrial executives who connive to exploit the system for personal gains.”