ArcelorMittal Moves Into Phase 2 Expansion With Massive Job Creation for Poverty Alleviation

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ArcelorMittal Moves Into Phase 2 Expansion With Massive Job Creation for Poverty Alleviation

–As New Playgrounds in Nimba, Bong Counties Gets Dedication Shortly

IPNEWS: ArcelorMittal, a Belgian-headquartered multinational steel company, is moving ahead with its Phase 2 Expansion, promising wider social economic benefits to Liberia.

The Phase 2 expansion started in 2022 is focused on expanding ArcelorMittal’s operations with the ongoing construction of an ore concentration plant, and investment in port and rail facilities.

In the project, AML has committed to boosting output to at least 30m tonnes per annual and will invest about 1.2 billion into the Liberian economy.

Jozephus (Joep) Coenen – Chief Executive Officer of ArcelorMittal Liberia who is responsible for all the integrated mining, rail, and port-related activities, the operational performance, and overall P&L financial performance of the business in Liberia.

Coenen announced in late 2022 that Phase 2 expansion has already created 3000 jobs for Liberians.

Since the start of 2023, the company continues to employ dozens of Liberians in low, middle, and senior supervisory roles tied to the expansion.

With Liberia historically challenged with the problem of job creation, Phase Two Expansion stands out to help the government realize its job creation pledge under the pro-poor agenda. With Phase 2 expansion, the government is expected to raise additional customs revenue from the company’s expanded operations from the onset and in the medium, and long term.

Money raised here could be used to solve mounting social problems in communities affected by the operations of AML and elsewhere.

It could even provide a source of income for SMEs because already, several logistics, care, and construction companies with Liberian staff are providing services for AML massive expansion.

It is without a doubt that ArcelorMittal’s Phase Two Expansion will evidently benefit Liberia, which otherwise receives only small inflows of direct foreign investment (at US$87m in 2020), has limited financial and infrastructural capacity, and faces recurrent local-currency crunches, factors that will continue to weigh on political stability in the near term.

In mid-September 2021, ArcelorMittal Liberia signed an amendment to its Mineral Development Agreement with the executive branch of the Liberian government.

The deal was on the expansion of its mining and logistics operations, committing to staying in Liberia for at least another 25 years.

The expansion project according to the Economist Intelligence includes the construction of a new concentration plant and an upgrade of rail and port facilities linked to ArcelorMittal Liberia’s Yekepa iron ore mining operations in northeastern Liberia.

In this expansion, AML has planned to spend about US$65m during the project’s first phase, which would have spanned over three years, during which the company in the agreement sought to triple annual iron-ore output to 15m tonnes, from 5m tonnes.

So, despite the ongoing phase Two expansion, it is also key for the government to act critically and finalize outstanding issues on the originally proposed new 25 years deal for the general good of the country.

In a related development, ArcelorMittal and community dwellers in Bong and Nimba counties are gearing up for the dedication of two newly constructed playgrounds.

Nimba’s Camp #4 in the mining town of Yekepa and Zoweinta in Bong County are two locations where the dedications are expected to place in over just a week.

ArcelorMittal and its partners hired a Liberian construction firm who has constructed the playgrounds and temporarily turned them over to community leadership until dedication takes place.

Hundreds of children in Yekepa Camp 4 and Zoweinta are expected to use the facilities which AML considers key for early childhood development.

The playground is equipped with “mary go around”, swings, seesaws, slides, monkey bar, jungle gym, and other equipment”.

It is solar enabled to permit use at night and ensure safety of children.

A third playground is being built in Frank Diggs Town in Nuewein Administrative District, Grand Bassa County.

The project which worth thousands of dollars is part of AML’s Phase 2 Expansion- an additional 1.2 billion to be invested in mining, rail, and processing.

ArcelorMittal said, its target is to ensure that more children in different host communities that are affected by its operations stand ready to gain huge variety of skills from these playgrounds.

“It is expected these kids will develop coordination, social awareness, language and so much more from these facilities”, one of the contractors working on the project disclosed.

The communities benefiting from the playground are those close to its mining and logistics operations.

Ahead of the dedication, there is huge excitement with community members already hailing AML for its decision to bring joy to their children.

As stated earlier, in Liberia, today’s children are overwhelmed with an abundance of activities and fewer opportunities to enjoy outside play.

Social media, TV shows Video games, after-school activities, and their academics demands are leading to disappearing playgrounds and playtime, especially that since the end of war many families are focused on acquisition of plots of land to build homes.

In fact, community playgrounds have been increasingly disappearing and being replaced by houses.

Notwithstanding, ArcelorMittal Liberia has recognized that recreational activities are a key part of the development of children and has embarked on a drive to construct playgrounds in its host communities in Nimba, Grand Bassa and Bong Counties.

As part of its concession area and host communities’ facilities improvement and or engagement drive, ArcelorMittal Liberia’s management has made the conscious decision to give children safe and conducive venues to play and exercise close to their homes.

In December 2022, the company completed and dedicated a modern children’s playground in its Buchanan concession area.

 

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