IPNews-Monrovia,Liberia-29 April 2018: The leadership of the House of Representatives has commenced investigation into the operations of BHP Billiton concession, to clearly establish its status of its social development fund to Nimba County as contained in the concession agreement.
A communication from Nimba County electoral district#2 Representative Prince O. S. Tokpah, detailed BHP Billiton’s inability to conform to terms of commitment to pay in royalty US$200,000 annually to support Nimba county social corporate responsibilities for two operational areas including Mount Kitoma and Mount Tappita in Nimba, of US$100,000, respectively.
He says accordingly, the Government of Liberia represented by the Ministry of Finance and Development Planning has not been able to deliver said amount to the people of Nimba for the past six years, after several requests by the county for budgetary allotment.
The Nimba County lawmaker also notes that similarly, citizens have repeatedly requested an explanation about the refusal of government to forward same to the account of Nimba County.
Predicated upon the existing facts, he pleads with his colleagues to invite the Minister of Finance to clearly provide briefing on the status of the BHP Billiton social development fund. Meanwhile, the House of Representatives has forwarded the communication to its leadership to investigate and act accordingly.
BHP Billiton is Australian is a muti-million dollars steel giant with investment across the world including Liberia in 2010. It may be recalled BHP Billiton (BLT.L) (BHP.AX) in June 2010 signed a $3 billion a deal with the government of Liberia to develop a large-scale iron ore project.
The company is the latest in a string of mining firms that have signed deals for iron ore projects in West Africa — a politically unstable region, home to some of the world’s last great undeveloped minerals deposits — as prices of the steelmaking raw material rise after slumping in 2009. The mineral development agreement, (MDA) allows BHP Billiton to continue exploring for iron ore at Goe Fantro, Kintoma, St. John River South and the Tolo Range.
During the signing of the BHP Billiton concession agreement, former National Investment Commission Chairman Richard Tolbert was quoted as saying, “We are delighted to have reached this agreement with BHP Billiton following 18 months of discussions.”
For BHP Billiton, it said the agreement sets out the legal and fiscal framework to develop the leases, including stabilization of taxes, duties and other trade terms.
“The Liberian leases are all proximate to the existing 250km long rail corridor that runs from the Guinean border to the Liberian coast,” the company said in a statement.
The deal came when Liberia, was still recovering from a 1989-2003 civil war — negotiates other potential mining accords after a flurry of deals in the past five years worth about $10 billion.
Recounting than in April of 2009, the government said it was in talks with Brazil’s Vale VALE5.SA (VALE.N) over a possible concession, with subsequent negotiations in January of 2010, with Israeli businessman Jacob Engel who became the latest foreigner to invest in Liberian iron ore deposits, grabbing a 25-year licence for the Western Cluster.
China Union 000036.SZ snatched up an iron ore concession at the start of 2009 and ArcelorMittal ISPA.AS, Russia’s Severstal (CHMF.MM), and Jersey-based AmLib Holdings Plc are also active in the country.
The International Monetary Fund said this year Liberia had made strong advances in financial management and transparency in the mining sector and was on track to clear much of its debt this year under the Heavily Indebted Poor Countries Initiative.
