MONROVIA – The Liberian Senate has voted in favor of the Amended Mineral Development Agreement giving Bea Mountain additional 25 years of operations in Liberia.
By Henry Karmo, [email protected]
This decision was made during a special session held on Wednesday, August 30, 2023. The vote on the amendment saw 15 Senators in favor and 5 against, with no abstentions. The amended concession agreement between Bea Mountain Mining Corporation (BMC) and the Government of Liberia will grant the company an additional 25 years of operation.
The Senate’s Plenary, on Wednesday, August 30, 2023, passed into law the First Amendment to the Restated and Amended Agreement of BMMC. This move came following a recommendation by the Senate Joint Committee, led by the Committee on Mines, Energy, Natural Resources, and Environment, after a public hearing involving sectorial agencies.
“In view of the foregoing, the Joint Committee wishes to recommend to the Plenary of the Liberian Senate for the ratification of the First Amendment to the Restated and Amended Mineral Development Agreement entered into between the Government of the Republic of Liberia and the Bea Mountain Mining Corporation (BMMC),” the Joint Committee concluded.
Under the new 25-year agreement, BMMC is expected to make an additional investment of US$520 million. The Committee’s findings indicate that the First Amendment to the Restated Mineral Development Agreement includes an accumulative basic Community Development Fund (CDF), Clan Development Fund, 50 percent surface rental fees, five percent ownership of equity, as well as increased financial benefits to the affected communities.
Furthermore, the Committee stated that considering all the taxes and levies outlined in the First Amendment to the Restated Agreement, it is clear that the country will accrue substantial financial benefits compared to the Restated and Amended MDA of 2013.
The Joint Committee also noted that the employment of Liberians will see a significant increase, rising from the current 3,500 in the Restated and Amended MDA to 4,000 in the First Amendment to the Restated MDA.
The Joint Committee further mentioned that the company, as part of the First Amendment, will expand its operational area from 485 sq/km to 537 sq/km, leading to an increase in surface rental fees.
The Senate Committee on Mines, Energy, Natural Resources, and Environment endorsed the passage and ratification of the First Amendment to the Restated MDA. The Joint Committee resolved that the company should contribute an additional One Hundred Thousand United States Dollars to each of the four clans, namely Mana, Darblo, Seimavula, and Menmassa clans, for clan development purposes through a memorandum of understanding (MOU) within six months after ratification.
Following the Senate’s ratification, Plenary directed the Secretary of the Liberian Senate to forward the instrument to the House of Representatives for concurrence.