Monrovia, Liberia — The Liberian government and ArcelorMittal Liberia have held a high-level consultation on the implementation of a new Community Development Fund established under the company’s Third Mineral Development Agreement.
The meeting, held on Monday at the Ministry of Mines and Energy, focused on the framework for a Community Development Committee that will oversee the management and implementation of funds earmarked for communities affected by ArcelorMittal’s mining operations.
Representatives of the county leaderships of Nimba, Bong and Grand Bassa attended the consultation, alongside officials from the Ministry of Finance and Development Planning and the Ministry of Local Government.
The fund is expected to finance development projects in communities located along ArcelorMittal Liberia’s mining, rail and port operations.
Liberia’s Minister of Local Government, Francis Nyumalin, said decisions surrounding the fund must prioritise the interests of people in the counties.
“Whatever we do must be in the interest of our people, especially people in the counties,” Mr Nyumalin said.
He welcomed the allocation of resources for county development, describing it as part of the implementation of the Mineral Development Agreement.
“We are happy that something is set aside to develop the counties and our people, and I think this is part of the implementation of the MDA,” he said.
The Ministry of Finance and Development Planning said it would participate in the process to ensure that projects funded through the mechanism are consistent with national development priorities.
Anthony Myers, Deputy Minister for Fiscal Affairs at the ministry, said the ministry’s involvement was linked to its responsibility for development planning and public investment.
He said the government’s development strategy includes a local component known as the County Development Agenda, which identifies interventions for communities across the country.
“This is also part of the Government of Liberia’s decentralisation agenda, with the support and leadership of the Ministry of Local Government,” Mr Myers said.
“We take this seriously and will be a part of this as long as it lasts to ensure that projects selected from the counties are a reflection of the people and are in line with the government’s development agenda.”
Mines and Energy Minister R. Makinokey Tingba thanked ArcelorMittal Liberia and representatives of the three counties for participating in the consultation.
He said the government wanted to take a more proactive approach to managing agreements with mining companies.
“We had delinquencies with implementation of concessions in the past, and at this time we want to be fully focused so that our people can benefit,” Mr Tingba said.
He also called on ArcelorMittal Liberia to expand its support for alternative livelihoods in communities affected by its operations.
The minister suggested programmes in agriculture and poultry production that could provide income opportunities for residents who are not employed by the mining company.
“We want AML to engage into some form of alternative livelihood programme where our people in the concession areas can do some form of poultry and agriculture production,” he said.
“People who are not working with the company can begin to do some work and earn some income.”
ArcelorMittal Liberia’s Head of Sustainability and External Relations, Marcus Wleh, said the consultation would allow the government and the company to agree on the individuals who would serve on the Community Development Fund Committee.
He said the committee would be responsible for helping to ensure that the fund is properly implemented for the benefit of communities.
Mr Wleh said ArcelorMittal Liberia remained committed to empowering communities through programmes developed in partnership with stakeholders.
The consultation comes after Liberia approved an amendment to ArcelorMittal Liberia’s Mineral Development Agreement that significantly increased the company’s financial contribution to communities affected by its operations.
Under the Third Amendment, ArcelorMittal Liberia is required to contribute US$5 million annually to a Community Development Fund supporting socio-economic development in Nimba, Bong and Grand Bassa counties.
The contribution is an increase from the previous annual community development contribution of US$3 million and is subject to annual adjustment for inflation.
The fund is separate from other commitments contained in the agreement, including social infrastructure, education, training and employment programmes.
The agreement also provides for a separate annual contribution of US$500,000 for education and training, including scholarships and support for mining and geology education.
Among the infrastructure commitments are projects involving roads and bridges in the affected areas, including the KM 2.5 Bridge in Buchanan, the St John River Bridge connecting Bong and Grand Bassa, and the Sanniquellie-Yekepa road.
The agreement also provides for a vocational training centre in Buchanan and continued support for housing rehabilitation, education and employment programmes.
The creation of the new fund is expected to provide substantially more resources for community development in the three counties.
At US$5 million a year, the fund would amount to US$25 million over five years and US$50 million over 10 years, before inflation adjustments and any additional payments required under the agreement.
The consultation therefore comes at a critical stage, as stakeholders begin to determine how the money will be allocated among the three counties and how communities will participate in deciding which projects receive funding.
Questions around transparency, accountability, project selection and financial oversight are also expected to form part of the discussions.
For communities that have hosted ArcelorMittal’s mining operations for years, the central issue is now not only the size of the fund, but whether the resources will be managed transparently and translated into projects that address their most pressing development needs.
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