IPNEWS: High Power Exploration’s (HPX) relentless pursuit to wrest control of Liberia’s strategic rail infrastructure from ArcelorMittal Liberia (AML) has not only jeopardized the nation’s economic growth but also directly cost Liberia millions in lost revenue and thousands of job opportunities. This ongoing campaign by HPX is emblematic of a broader strategy to dominate the Yekepa-Buchanan rail line without any investments in the country, undermining Liberia’s potential for development and prosperity.

The Manipulative Tactics of HPX

HPX’s approach has been nothing short of a systematic effort to derail ArcelorMittal’s Third Mineral Development Agreement (MDA), which was designed to unlock significant economic benefits for Liberia. During the negotiation phase of ArcelorMittal’s Third MDA in 2021, HPX reportedly infiltrated the discussions by placing key officials who could sway decisions in their favor. This calculated interference was aimed at obstructing the approval of the MDA, despite ArcelorMittal’s successful negotiations that resulted in an agreement beneficial to both the company and the country.

Once the MDA was forwarded to the Liberian Legislature for ratification, HPX escalated its efforts. The company allegedly mobilized a propaganda campaign, enlisting the support of lawmakers and local leaders, particularly from communities hosting ArcelorMittal’s operations. The narrative they pushed was that the agreement would monopolize Liberia’s resources—a claim that blatantly disregarded the multi-user provisions outlined in Article 3 of the amended MDA. These provisions explicitly allowed other companies to access the railroad, debunking HPX’s monopolistic claims.

The campaign further intensified with the creation of a clandestine online platform, “Liberian Economy,” which was used to disseminate misinformation and attack ArcelorMittal’s MDA. Despite AML’s clear commitment to a multi-user framework, which had already received government approval, HPX’s negative media blitz succeeded in stalling the MDA’s progress, ultimately leading to its return to the Executive branch, where it has languished amid the Weah government transition.

The Economic Cost of HPX’s Disruption

Had the Third MDA between ArcelorMittal and the Government of Liberia been approved in 2021, the country could have been on track to receive up to $200 million annually from AML’s expanded operations. Over the past three years, this would have amounted to approximately $600 million in lost revenue—funds that could have been channeled into crucial sectors such as education, healthcare, electricity, and sanitation.

Beyond the direct financial loss, Liberia has also missed out on significant socio-economic benefits tied to the MDA. ArcelorMittal’s obligations under its Corporate Social Development Fund, which currently stands at $3 million, were set to increase alongside the company’s broader social development initiatives. The expansion project under the Third MDA was expected to create approximately 2,000 permanent jobs during the construction phase, primarily benefiting Liberians. Additionally, the increased demand for services, supplies, and support functions necessary for the expanded mining operations was projected to generate around 3,000 indirect jobs.

The loss of these opportunities, both in terms of employment and revenue, is a direct consequence of HPX’s interference. The company’s disruptive actions have deprived Liberia of approximately $1.35 billion in potential investment and $600 million in combined annual revenue. This loss has not only hindered infrastructure development but also stifled job creation and business growth, leaving Liberia’s economy weaker and its people more impoverished.

HPX’s Deceptive Campaign

HPX’s campaign to remove ArcelorMittal as the rail operator is motivated by a desire to control Liberia’s rail infrastructure without making any substantial investments in the country. Despite not having invested in the Liberian economy, HPX has relentlessly pursued a propaganda campaign aimed at discrediting ArcelorMittal, which has been a committed investor in Liberia since 2005.

ArcelorMittal’s contributions to Liberia’s recovery cannot be overstated. The company has invested over $500 million in the restoration of the Yekepa-Buchanan railway, which was devastated during Liberia’s civil war. This investment has been crucial in revitalizing the country’s mining sector and providing a lifeline for the economy. However, HPX’s actions threaten to undo this progress, as it continues to push for control of the rail line, regardless of the economic consequences for Liberia.

The Desperation and Manipulation of HPX

HPX’s desperation to remove ArcelorMittal as the rail operator became glaringly evident when the company reportedly disbursed $34 million to the Weah administration in what many have criticized as a bribe. This “free money” was seen as an attempt to influence the government to enforce an illegal framework agreement that contravenes Liberia’s laws, further highlighting HPX’s willingness to undermine the country’s legal framework for its gain.

This desperation has persisted into the Boakai administration, with HPX now offering to fund the establishment of a National Rail Authority—an entity that has not been budgeted for or passed into law. Such actions underscore HPX’s relentless push to control Liberia’s rail infrastructure, irrespective of the legal and economic ramifications for the country.

The Economic Perils for Liberia

HPX’s unyielding campaign for Liberia’s railway presents a clear economic danger to Liberia. By stalling the ratification of the AML’s Third MDA, HPX has effectively sabotaged the economic progress that could have been achieved through AML’s new and additional investment. The loss of potential revenue, jobs, and business opportunities is a direct result of HPX’s sustained propaganda and misinformation campaign.

Moreover, these actions threaten to destabilize Liberia’s investment climate. If a long-term investor like ArcelorMittal can be undermined by a competitor with no financial stake in Liberia, it sends a chilling message to other potential investors. This could lead to a decline in foreign investment, further exacerbating Liberia’s economic woes and leaving the country vulnerable to exploitation by opportunistic entities like HPX.

Conclusion: The Human Cost of HPX’s Greed

The true victims of HPX’s campaign are the Liberian people, who have been deprived of the economic benefits that could have been realized if ArcelorMittal’s MDA had been ratified. The government has lost millions in potential revenue, while the people have missed out on thousands of jobs and business opportunities.

As HPX continues its push for control of Liberia’s rail infrastructure, the company must face the reality of its own uncertain future, particularly in Guinea, where the completion of the Trans-Guinea Railway Project could further complicate HPX’s plans. In the meantime, Liberia remains a casualty of HPX’s greed, with the country’s economic future hanging in the balance.