–AS GRAND GEDEH GROUP VOWS TO RESIST ALLEGED SECRET PLANS TO SELL PUTU MOUNTAIN!

IPNEWS: A group of Grand Gedeh citizens and activists, under the banner, Gedeh United to Protect Natural Resources (GUProNRes), have alarmed over what it terms as a dubious plan to give out the Putu Mountain concession to an illegitimate and unknown foreign company.

The group, in a statement read Sunday, September 29, 2024, in Monrovia, sending out a caveat to the Liberian government against an alleged intent to enter into an investment agreement with a foreign company to take over the Putu Mountain concession.

According to GUProNRes’ Director of Press, Sampson T. Noah, quoted a credible government source as saying that plans are nearing conclusion with a foreign company to acquire the Putu Mountain, even though the company in question has no proven solid financial and economic capacity and/or substantive long-term operation of a major mineral concession such as the Putu Mountain.

The group further alleged that the motive of this alleged sinister plan, which is being influenced by some selfish individuals in both the Executive and Legislative branches of government, is to earn millions of dollars by acquiring the concession and sell to another company with the requisite economic and financial capacity.

GUProNRes said that there’s no guaranteed arrangement to assure the people of Grand Gedeh County of the required social and economic benefits for the planned exploitation of their resources and the possible accompanying environmental degradation.

The Grand Gedeh group has meanwhile, vowed to mobilize citizens and residents of the county to democratically (lawfully) resist any illegal attempts to dubiously sell or give out Putu Mountain with no clear and unequivocal assurance of how the people of Grand Gedeh would benefit, as well as the proven integrity, financial and economic capacity of any company taking over the Putu Mountain.

It can be recalled that in 2017, Minister of Mines & Energy, Patrick Sendolo confirmed before the Liberian Senate that Russian steel giant, Putu Mining pulled out of Liberia.

Minister Sendolo told the country that Putu Mines left because it could not handle the mining operations alone, after it tried to find partners but to no avail.

Minister Sendolo’s appearance before the Senate was a result of a communication written by then Grand Gedeh County Senator, G. Alphonso Gaye, requesting his colleagues to investigate circumstances surrounding the closure of Putu Mining.

Senator Gaye also requested the government to state whether or not the concession company had completely ceased its operation in the country, and if so, what has led to the closure, and to also explain whether the company relinquished its rights to the concession or was still holding on to it.

In early July 2024, Grand Gedeh County District No. 1 Representative made similar alarms of a secret deal been in place or the selling of Putu Mountain.

Grand Gedeh County District #1 Representative Jeremiah Sokan has called for urgent action from the leadership of the House of Representatives to address the lingering economic challenges faced by the people of Grand Gedeh.

In a letter to Speaker Fonati Koffa, Sokan requested the appearance of Jeff B. Blibo, Chairman of the National Investment Commission, and Wilmot Paye, Minister of Mines and Energy, to provide a comprehensive status update on the Putu Iron Ore Mining Company deal.

The Putu Iron Ore Mining Company, a Russian steel giant, signed a Mineral Development Agreement (MDA) with Liberia on September 2, 2010. The company’s operations, which ceased in 2016, significantly impacted the socio-economic landscape of Grand Gedeh County through employment, human capacity development, and infrastructure enhancement.

The lawmaker observed that the cessation of operations has led to a severe economic downturn in the region, with many citizens left jobless and the overall economic situation worsening.

Sokan highlighted the critical need for immediate intervention and comprehensive strategies to address the financial challenges faced by his constituents.

He referenced a statement made by former Minister of Lands, Mines, and Energy, Patrick Sendolo, in January 2016, which indicated that Putu Iron Ore Mining Company had exited Liberia due to difficulties in managing the mining process independently.

“The former minister’s declaration, ‘From all practical purposes, Putu is basically out of Liberia,’ underscores the finality of the company’s departure, despite the technical validity of the MDA,” Sokan wrote.

The Grand Gedeh Lawmaker outlined several key aspects which he believes require urgent clarification, including the current status of the MDA, the economic impact of Putu’s departure on Grand Gedeh County, future plans to attract new investors, support for displaced workers, and updates on infrastructure and community development commitments.

Sokan emphasized the importance of transparency and accountability in handling the aftermath of Putu Iron Ore Mining Company’s exit and called for immediate and sustainable solutions for Grand Gedeh County’s economic recovery.

It may be recalled, January 2016, the Putu Iron Ore Company based in Grand Gedeh County, southeast Liberia reportedly shut down operations in the county. 

Former Grand Gedeh County Senator G. Alphonso Gaye, who made the disclosure in plenary discussion, stated that the mining company has closed all its activities and subsequently, paid off all employees and contractors.

Sen. Gaye said the company is currently selling all assets both in Monrovia and Grand Gedeh County to leave Liberia. He added that due to the shutdown, many citizens in the county have become jobless and the economic situation in Grand Gedeh has become unbearable, especially for those who were in the employ of the Russian based multi-million dollars company.

Senator Gaye, who won on the ticket of the ruling Unity Party, described the situation as unfortunate for the people of Grand Gedeh County and the country at large. He also highlighted the fall in the sale of ore and crisis between Ukraine and Russia, adding many shareholders of the company are on travel ban in Russia, as a result, the investment has faced setback that led to pull off.

In September 2010, the leading Russian steelmaker announced that a Class A mining license for mining iron ore in the Putu Mountain Range has been granted to the Putu Iron Ore Mining Inc, which is a hundred percent owned subsidiary of Severstal.

The license was issued by the Government of Liberia through its Ministry of Lands, Mines and Energy, which followed a feasibility study submitted on 31 March 2014. “The issuance of the Class A mining license…indicates that the company’s feasibility study responded to the requirements outlined in the Mineral Development Agreement, or MDA. We believe that it will further improve the investment perspective of the project,” said Dmitry Sakhno, Severstal’s project department director.

The former Senator Gaye further called on the Minister of Lands, Mines and Energy Patrick Sendolo, to immediately intervene in rescuing the situation. Severstal was planning to invest $66m in 2012 for the development of the project. First production was expected to start in 2017.

The Mineral Development Agreement for the project was formally approved by the Liberian Government in September 2010. Putu was earlier owned by Afferro Mining with 38.5 percent and Severstal Resources 61.5 percent.

In December 2011, Severstal’s indirect subsidiary Lybica Holdings entered into a purchase agreement with Afferro to purchase its 38.5% interest in the project. The agreement was approved by Afferro in January 2012.