Liberia: Government Directs Aml to Grant Ivanhoe Atlantic Access for Environmental Study

The Government of Liberia has taken a decisive step toward implementing its multiuser rail policy by formally requesting that ArcelorMittal Liberia (AML) grant access to Ivanhoe Atlantic to conduct an Environmental and Social Impact Assessment (ESIA) along the Yekepa-Buchanan railway corridor. This request, communicated through letters from both the Ministry of Mines and Energy and the Ministry of Transport obtained by the Observer through Government sources, signals tangible action in the government’s push to open up Liberia’s rail infrastructure to multiple users, ensuring broader economic benefits and regulatory compliance.

The letters, addressed to AML CEO Michiel van der Merwe, direct the company to facilitate Ivanhoe Atlantic’s assessment scheduled for March 17-21, 2025. The Ministry of Mines and Energy cited Section 1 of the Mineral Development Agreement (MDA) of 2005, emphasizing that as a legally registered and licensed entity in Liberia, Ivanhoe Atlantic must be granted the opportunity to conduct an ESIA as part of the due diligence required for its anticipated mining and transportation operations.

The Ministry of Transport echoed this stance, noting that the Environmental Protection Agency (EPA) has already mandated the ESIA as a critical prerequisite for Ivanhoe Atlantic’s activities. The letter reassured AML that the assessment would not disrupt its current operations and further assigned the Assistant Director of Rail at the Ministry of Transport, Mr. Daniel Kpehe Bolay, to oversee the process and ensure smooth coordination.

Why this matters

For years, Liberia’s Yekepa-Buchanan railway, a 360-kilometer line critical to iron ore exports, has been controlled exclusively by AML. The company’s Mineral Development Agreement (MDA) granted it the right to operate the rail, limiting access for other mining firms. However, Liberia’s government, under Executive Order 136, has adopted a multiuser rail policy, a move that will open the railway to multiple companies and significantly boost revenue generation.

This directive to AML represents a major shift from policy discussions to actual implementation. Granting Ivanhoe Atlantic access for an ESIA means that Liberia is actively preparing for a future where more than one company can utilize the railway for economic activities. This is particularly significant given that Ivanhoe Atlantic is expected to evacuate 30 million tonnes per annum of iron ore through Liberia once its operations reach full scale.

What and why an ESIA?

An Environmental and Social Impact Assessment (ESIA) is a critical study conducted before large-scale industrial or infrastructure projects can commence. It evaluates the potential environmental, social, and economic impacts of a project, ensuring that risks are identified and mitigated early. In the context of mining and rail transport, an ESIA examines:

The impact on surrounding communities: This includes displacement, job opportunities, and how mining-related transport affects daily life.
Environmental risks: Studies focus on deforestation, pollution, and biodiversity threats along the rail corridor.
Rail infrastructure safety: The study will assess whether the current railway can sustain increased usage and what upgrades might be required.
For communities along the Yekepa-Buchanan rail corridor, this ESIA represents the first official step in expanding economic activity in their regions. Unlike AML’s existing operations, which have been criticized for providing limited benefits to communities, a multiuser rail system could create more jobs, infrastructure improvements, and social development projects.

AML has no right to block access

The government’s directive places AML in a challenging position. For years, AML has resisted any attempt to introduce a multiuser rail model, arguing that its MDA grants it exclusive control. However, under the existing agreement, AML does not have the right to block an environmental study. The ESIA is a regulatory requirement, not a commercial negotiation, meaning AML has little legal ground to refuse access.

Furthermore, AML has recently raised legal objections to the government’s push for a multiuser rail system, even threatening international arbitration if its exclusive rights are curtailed. However, Liberia’s legal position, backed by a 2022 opinion from then-Minister of Justice, Cllr. F. Musah Dean, clearly states that the government has the sovereign right to manage, regulate, and expand rail access as it sees fit.

By proceeding with the ESIA, the government is demonstrating that it will not wait for AML’s approval to implement national infrastructure policies. This could set a precedent for further actions, such as initiating public procurement processes for an independent rail operator or fast-tracking agreements with other mining firms seeking access.

A sign of confidence for investors

The timing of this development is also critical. Liberia is actively engaging international investors and mining companies interested in leveraging the country’s rich iron ore deposits. One of the key obstacles for potential investors has been the lack of rail access, as AML’s monopoly has discouraged companies from committing capital to mining projects.

With Ivanhoe Atlantic now moving forward with its ESIA, other investors may gain confidence that Liberia is serious about breaking AML’s monopoly and ensuring open infrastructure. This could accelerate funding for other rail-linked projects and unlock billions of dollars in new investment.

What’s Next?

AML now faces a decision: it can comply with the government’s directive and facilitate the ESIA, signaling its willingness to cooperate with the multiuser rail transition, or it can resist the move, further escalating tensions with policymakers. Given that the government has already assigned oversight personnel from the Ministry of Transport to the assessment team, AML will likely have little room to obstruct the process without drawing further government scrutiny.

Meanwhile, Ivanhoe Atlantic is expected to immediately begin Feasibility and Engineering Studies for the Liberty Corridor, a separate rail project that could eventually reduce reliance on one rail line infrastructure altogether. If AML continues to oppose the multiuser model, it risks being diminished in Liberia’s long-term infrastructure plans, as more companies come onto the system.

Liberia’s decision to push forward with an ESIA for Ivanhoe Atlantic despite AML’s historical dominance over the Yekepa-Buchanan rail is a major milestone in its economic transformation. The government’s directive shows that it is serious about enforcing its multiuser policy and ensuring that national infrastructure serves multiple stakeholders, not just one company.

AML’s next move will be closely watched, but one thing is clear: Liberia’s multiuser rail system is no longer just an idea–it is becoming a reality.

For investors, it signals that Liberia is making real progress toward an open and competitive business environment.

By Liberian Observer.