IPNEWS-MONROVIA: Liberia remains one of the world’s largest deposits of natural gold and other minerals, yet the country continues to be stuck in entrenched poverty.
The Independent Probe Newspaper (IPNEWS) hidden cameras have been conducting a month-long investigation into how diamonds, gold and other natural resources are being extracted with limited proceeds going into the national coffers, while millions enter the pockets of few powerful Liberian government officials and others.
In 2015, Aureus Mining sold shares to Bea Mountain, (mostly loyalists of former President Ellen Johnson Sirleaf), and it began operations by laying off 20% of its previous work force. The move sparked fear among employees with too little to do in the protection of jobs due to powerful men having significant influence in the Ellen Johnson-Sirleaf Administration including her brother Carney Johnson.
Bea Mountain, with Canadian partners, worked with a small team of South African gold miners, in expanding the company from its original mining site in Kinjor to the Liberty Gold Mines, including other towns within the mineral rich Grand Cape Mount County.
IPNEWS’ investigation unearthed that thousands of dollars exchanged hands with county officials, including now U.S. Treasury Department indicted Grand Cape Mount County Senator, Cllr. Varney Sherman, allowing an unprecedented onslaught of gold and other minerals extraction in Kinjor, Grand Cape Mount County.
This news outlet understands that a mouthwatering US$200,000 are unaccounted for as Corporate Social benefits to Grand Cape Mount County.
In 2018, following the inauguration of President George Manneh Weah as Liberia’s 25th President, a communication from the Director of the Cabinet, Jordan Sulunteh, instructed the Ministry of Mines & Energy that all revisions of concession contracts would now be carried out by the Office of the President. During this period, security presence was heightened in Kinjor and its surroundings, including the setting up of substation for the Police Emergency Responds Unit (ERU).
Few months later in July 2018, Bea Mountain sold out to a new Turkish company called Avesoro Resources, to conduct industrial mining (surface mining) sparking mixed emotions among senior government officials and Grand Cape Mount County officials, yet nobody wanted to take the lead in asking the hard questions.
Avesoro Resources within days, brought in several heavy equipment to open the new mines started by Bea Mountain in accordance with the provisions of the parent company Aureus Mining, for ‘Surface Mining’.
Environmentalists and extractive experts told IPNEWS that huge environmental degradation and inhumane treatment have engulfed the concession area.
An employee of the company speaking to IPNEWS on condition of anonymity, told IPNEWS that some senior managers abused the human dignity of low-level employees, including wrongful layoffs and long working hours beyond schedules.
A Turkish national with military backgrounds and long experience, working in illicit and troubled zones across Africa, identified as Bahri Cambazgil was one of the powerful men currently serving at Avesoro Resources. Cambazgil was recently dismissed in January 2021, for misapplication of entrusted funds for employees in conspiracy with another international illicit miner and General Manager, Ozkan Umurhan. Umurhan is now being replaced by Ali Ozdemir, another Turkish national, who has now gained the favor of locals.
Since its entry, Avesoro Resources, according to an insider, has been granted mining rights without Legislative approvals.
Sources within the corridors of the Senate, tell this newspaper that the deal was brokered by the aid of the Sherman & Sherman Law Offices, with Cllr. Varney Sherman allegedly using his affluence in making sure the deals are consummated.
The deal granting Avesoro Resources underground mining, outside of the concession agreement of the parent company, Aureus Mining, including violation of the Environmental Permit Regulations demanding the commissioning and decommissioning of an existing mining concession, to establish environmental impact or not before venturing into a newer face of the concession was never followed.
Mines and Energy officials, its Minister Gesler E. Murruy, are yet to respond to earlier inquiry from IPNEWS seeking clarity into how Avesoro Resources was granted an ‘Underground Mining License’, without having Legislative review or extension, including an environmental impact study to establish whether an environmental damage was caused to the environment of the concession area.
Following an inquest by IPNEWS to the Environmental Protection Agency (EPA) head, Prof. Wilson Tarpeh, a hastily arranged elaborate program was held granting environmental permit to Avesoro Resources in December 2020, for ‘underground mining’. The move by the EPA to have a well-publicized program for granting an environmental permit remains unthinkable, yet the question remains how was ‘Underground Mining License’ granted to Avesoro Resource without Legislative approval?
In 2019, Avesoro accrued control of MNG Gold, following request and notice by shareholders to scale down operations in Liberia.
Avesoro, acting on pieces of advice from influential Liberian government officials, encouraged its parent body in Turkey, through its Africa Command in Dakar, Senegal, to expand in accruing large gold fields in Liberia. The move saw the retainer of the trademark ‘MNG Gold’, including the acquisition of other smaller gold fields in Gbarpolu County (James Town), four major gold mines in the South East, including the famous ‘Government Camp in Sinoe County.
Recently, Avesoro Resources harnessed the takeover of Hummingbird Resources with the same name retainer (Hummingbird Resources), as acquired in 2013, by investing heavily in exploration and feasibility assessments in the sector.
In March 2019, the legislature ratified a 25-year Mining Development Agreement (MDA) for Hummingbird Resources, with the option to extend by mutual consent and a framework for further exploration, mine development and production.
Avesoro Resources continues to develop Liberia’s first and largest commercial gold mine, at its New Liberty facility, amid heightened land disputes and overlapping mining claims.
Regrettably, Avesoro Resources is not a listed gold mining international company as per the records of the Extractive International latest licensed companies across the world doing gold and other mineral mining business.
It may be recalled, in 2010, a communication from Mr. Ivan Barbalić, Chairman, United Nations Security Council Committee, dated 15 December 2010, established pursuant to Resolution 1521 (2003) concerning Liberia, addressed to the President of the Security Council.
Barbalić: “I have the honour to refer to my letter dated 2 December 2010 transmitting a copy of the final report of the Panel of Experts on Liberia. On behalf of the Security Council Committee established pursuant to Resolution 1521 (2003) concerning Liberia, and in accordance with paragraph 9 of Security Council Resolution 1903 (2009), I have the honour to submit herewith a revised version of the final report, which was considered in the Committee on 13 December 2010 (see enclosure).”
“I would appreciate it if the present letter, together with its enclosure, could be brought to the attention of the members of the Security Council and issued as a document of the Council.”
In response, a letter by Wynet Smith (Coordinator, (Signed) Rowan Bosworth-Davies, (Signed) Hervé Gonsolin, dated 10 November 2010 from the Panel of Experts on Liberia addressed to the Chairman of the Security Council Committee established pursuant to Resolution 1521 (2003) concerning Liberia:
“The members of the Panel of Experts on Liberia have the honour to transmit the final report of the Panel, prepared pursuant to paragraph 9 of Security Council resolution 1903 (2009).”
Get full detail on final report by the UNSC on Liberia Minerals: www.securitycouncilreport.org
In line with several resourced-rich West African countries, Liberia has been planning to revise its 24-section long 2000 Minerals and Mining Law (the 2000 Mining Law) since 2012, in order to boost the state’s share of resource profits, as well as transparency and accountability.
The 2000 Mining Law was enacted during the presidency of Mr. Charles Taylor and replaced the Natural Resources Law of 1956. Although it was amended in 2004 to include a new chapter on the 2003 United Nations’ Kimberley Process Certification Scheme and was supplemented by Comprehensive Exploration Regulations in 2010, it has often been described as outdated, unclear and not very detailed in certain respects (e.g. the differences between Class A, B and C Mining Licenses).
Despite the Ebola crisis, which hit Liberia in 2014, this mining reform appeared to remain on the Government’s agenda.
The main objectives of this reform are to: harmonize the 2000 Mining Law with a number of laws, including the 2010 Public Procurement and Concession Act Law and the 2000 Revenue Code (as amended in 2011) and the 2009 Liberia Extractive Industries Transparency Initiative (LEITI) Law, switch from a concession-based system to a license-based system and reduce carve outs from the prevailing legislation that are currently available under the 2000 Mining Law on the basis of negotiated mineral development agreements for major projects, increase local content requirements, and improve cooperation between the various governmental departments and agencies involved in the mining sector.
This reform, which is supported by the German International Cooperation Agency (GIZ) and the World Bank, is based, inter alia, on the following policies and documents: The 2013 LEITI post award process audit, the 2010 Mineral Policy guidelines, the 2009 African Union’s Africa Mining Vision guidelines, and various recommendations from the World Bank’s Extractive Industries Technical Advisory Facility.
This reform was driven by an Inter-Ministerial Steering Committee chaired by the Ministry of Lands, Mines and Energy (now Ministry of Mines and Energy), largely managed by former Deputy Minister Sam Russ, and includes representatives from the Ministries of Justice, Finance and Development Planning, Labour and Internal Affairs and of the Environmental Protection Agency (EPA), the Public Procurement and Concession Commission (PPCC), the National Bureau of Concessions (NBC), the Law Reform Commission (LRC) and the National Investment Commission (NIC).
Recently in Bong County, at the start of his nationwide tour, President George Manneh Weah warned concession companies operating in the country to live up to their social development mandates or risk replacement.
President Weah told companies operating in Kokoyah Statutory District, one of the places he visited, that they risk termination of contracts if they cannot live up to their social responsibilities in apparent reference to MNG Gold. Watch out for Part II of 6
