MONROVIA – Western Cluster Limited (WCL) has reaffirmed its commitment to contribute to the social-economic development in western Liberia. WCL is a subsidiary of Sesa Goa, a Vedanta group company, engages in iron ore mining in Western Liberia.
Gerald C. Koinyeneh – [email protected]
In a statement issued in Monrovia, WCL said since 2011 it has invested approximately US$300 million in the country, including payment for the concession rights; US$15.5 million payment to the Community Development Fund; construction of two major bridges – the Klay Junction Bridge and the Gui Town Bridge; upgrading and maintaining the Tubmanburg to St. Paul River Bridge Road; and several other communities and infrastructure development initiatives.
The statement comes amid mounting pressure from residents of the county calling for the re-negotiation of the Mineral Development Agreement (MDA) between Liberia and WCL before the company can start operations.
However, in the statement, the company stated that in August 2011, it entered into a MDA with the Liberian Government for the iron ore mine in and about Tubmanburg, Bomi County, the iron ore mine close to Mano River Congo in Grand Cape Mount, and the iron ore deposit in Bea Mountain, also in Cape Mount.
After submitting its feasibility study, the company said it applied for Class A Mining License to start operations at the Bomi mines, and a road permit to start the transport of iron ore from Bomi Mines as provided by the MDA, but the license and the permit were not granted by the government before the deadly 2014 Ebola outbreak that forced the company to shut down its activities.
Also, as provided by its Mineral Development Agreement, WCL obtained and paid for a 44-acre tract of land at the Free Port for storage of its iron ore before shipment. However, the Ebola Virus outbreak suspended the operations of WCL in Liberia and the Covid-19 pandemic caused the extension of that suspension, the company added.
Further in the statement, the company clarified that in 2022, it sought to resume its operations; and to put that in to effect, a Memorandum of Understanding (MOU) was executed between WCL and the Liberian Government, pending the negotiation of an amendment to the MDA.
The MDA, it noted, provides for its amendment due to profound change in circumstances. The Amendment will therefore consider all the profound changes, which have occurred since the MDA was signed in August 2011 and one of these changes, among others, is that Vedanta Limited now owns 100% of WCL.
Vedanta Limited is a multi-billion-dollar mineral resource company and its operations are spread in several countries. The operations of Vedanta Limited are strictly consistent with fundamental principles of good corporate governance with utmost focus on inclusive growth, the company noted in the statement.
“This Memorandum of Understanding (MOU), which is a temporary instrument that does not affect the Mineral Development Agreement, has been misrepresented in the media for various baseless and unfounded reasons,” the company stated.
It added: “What is important to note is that under no parity of reasoning could WCL resume its operations after several years of suspension without an enabling intermediate agreement with the Liberian Government. The MOU is that enabling intermediate agreement; and pursuant to the MOU, WCL has provided additional monetary contribution to upgrade and maintain the Tubmanburg to St. Paul River Bridge road, which was virtually unpassable before. Also pursuant to the MOU, another payment of US$5 million was made for community development for Cape Mount County, Gbarpolu County and Bomi County. And further pursuant to the MOU, the road permit was granted by the Ministry of Public Works and the Class A Mining License was granted by the Ministry of Mines and Energy after a second and more contemporary review of the Feasibility Study.”
Currently the company said it is also working on generating direct and indirect employment opportunities for the locals, across its core and allied business functions and generating collateral investment opportunities for Liberians.
MDA provides Force Majeure
The company also mentioned that MDA provides for suspension of obligations where there is a force majeure situation; noting that the Ebola Virus outbreak and the Covid-19 pandemic are force majeure situations during which the Liberian Government declared a state of emergency. Those force majeure situations, which made it impossible for WCL to operate, necessitated the suspension of its operations in Liberia.
It added: “Vedanta Limited and its subsidiary, WCL, are committed to working with the Liberian Government and its people for the mutual benefit of all sides; and we affirm our commitment to work within the framework of the original Mineral Development Agreement, its amendments and any other rules and regulations, which relates to our operations in Liberia. We wish to also assure the Liberian Government and people of our commitment to comply with and abide by all applicable laws, which control or cover our mining operations, especially the Decent Work Act, so that maximum opportunity will be given to Liberians for training and employment.”
Wherever there is any allegation of transgression or violation of any law or regulation, the company assured that it will conduct thorough internal reviews and that appropriate remedial action, where required, will be immediately taken.
“We wish to assure the Liberian Government and people that we are prepared to institute corrective measures to ensure that the Liberian Government and no person stands at a loss, injury, or any inconvenience by our operations.”
“Those officials of the Liberian Government who worked with us and continue to work with us for this restart of our operations were and continue to be vigilant in ensuring that the Liberian Government and people are treated fairly, while strictly adhering to Liberian law, our Mineral Development Agreement and principles of the iron ore industry. We wish to assure the Liberian Government and people of our commitment to these general principles to facilitate smooth and productive mutual benefits for our Group and the Liberian Government and its people.”