Liberia: Government Reinstates Western Cluster Road User Permit, Vows to Revoke Permit If Company Reneges on Commitments
Monrovia—The Government of Liberia, through Justice Minister Cllr. Natu Oswald Tweh, announced on Tuesday that it has reinstated the road user permit for Western Cluster Limited after the company fulfilled certain commitments.
By: J.H. Webster Clayeh (0886729972) – websterclayeh@frontpageafricaonline.com
The government’s decision comes after Western Cluster faced scrutiny from both the public and government officials regarding its operations and impact on infrastructure.
Western Cluster Limited, a subsidiary of Elenilto Minerals & Mining, holds exploration and mining licenses for multiple iron ore deposits in Liberia, with key projects including the Bomi Hills Iron Ore Project in Bomi County and the Mano River Iron Ore Project in Grand Cape Mount County.
The company’s operations span the western part of the country, known as the Western Cluster, which includes Bomi Hills, Bea Mountain, and Mano River.
The estimated iron ore deposits in the region amount to 3 billion tons, with an expected annual production of 30 million tons.
In 2008, Delta Mining Consolidated initially won a $1.5 billion bid to develop the Western Cluster Iron Ore Deposit.
Therefore, predicated on the issuance of the temporary permit by the EPA [Environmental Protection Agency] as well as the report of the investigation of the road corridor repair and maintenance of the road corridor presently being undertaking by Western Cluster along with Western Cluster agreement to confront to the road user permit and the MDA [Mineral Development Agreement] and its engagement of the contractors for the continue maintenance and repair of the road, the government of Liberia hereby reinstate Western Cluster road user permit.
Cllr. Oswald Tweh, Minister of Justice
However, following allegations of bribery, the bid was disqualified, and the concession was later granted to Elenilto Minerals & Mining in 2010. Sesa Goa Limited, a subsidiary of Vedanta PLC, acquired 51% of Western Cluster from Elenilto for $90 million in a subsequent deal, but the project was delayed due to the 2014 Ebola outbreak and low iron ore prices.
As part of its agreement, Western Cluster is required to pay $2.8 million annually in social development funds to affected counties and invest in infrastructure, including the repair of railroads.
Earlier this year, Western Cluster came under fire from Senators and President Joseph Nyuma Boakai due to concerns over the company’s impact on local roads.
The transportation of iron ore via trucks and heavy machinery has caused significant damage to the roads in Gbarpolu, Bomi, and along the route to the Freeport of Monrovia, creating safety hazards and environmental risks.
This led to the suspension of the company’s road user permit (RUP-220620-004) in July 2023.
During a press briefing at the Ministry of Information, Cultural Affairs, and Tourism on Tuesday, Minister Tweh explained that he, along with officials from the Ministries of Mines and Energy and Public Works, led an inspection of the road from the St. Paul Bridge to Tubmanburg in Bomi County.
The inspection, he said, revealed that Western Cluster had made significant repairs and conducted maintenance along the road, reducing the burden on local communities.
“Western Cluster has hired contractors to continue the maintenance and repair of the road corridor,” said Minister Tweh. “They have submitted a detailed maintenance plan, which will be reviewed by the Ministry of Public Works.”
Based on these efforts, and in compliance with a temporary permit issued by the Environmental Protection Agency (EPA), the government has reinstated Western Cluster’s road user permit.
However, Minister Tweh emphasized that the government will not hesitate to revoke the permit if the company fails to meet its commitments under the permit and the Mineral Development Agreement (MDA).
“The government wants to unequivocally state that it will revoke the road user permit if Western Cluster does not uphold its obligations,” Minister Tweh warned.
Western Cluster, however, assured the government that it will adhere to environmental regulations and ensure all iron ore transportation occurs between 10 PM and 5 AM, in line with the approved traffic management plan.
The company also pledged to collaborate with the Ministry of Public Works on a joint road safety awareness campaign and the installation of a weigh station near the St. Paul Bridge.
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