The Government of the Republic of Liberia and ArcelorMittal have signed an amendment to the existing Mineral Development Agreement (MDA), which was yesterday ratified via the Liberian legislative process, extending the duration of the agreement to 2050, with a right to renew for a further 25 years.
The agreement the iron ore miner and steel producer said “solidifies ArcelorMittal’s long-term mining expansion and commitment to Liberia.” It also provides for the Government’s desire to make the Tokadeh to Buchanan rail corridor accessible to multiple users.
The agreement, alongside the recent inauguration of ArcelorMittal’s iron ore concentration facility at Tokadeh in Nimba County, highlights Liberia’s growing stature as a competitive and strategic hub for mineral development in West Africa. The state-of-the-art 20 Mt/y concentrator facility is one of the largest and most technologically advanced iron ore beneficiation plants in Africa and was inaugurated in June 2025.
The new concentrator forms the centrepiece of ArcelorMittal’s US$1.8 billion expansion project, bringing the company’s total investment in Liberia to US$3.5 billion – the largest foreign direct investment in Liberia’s post-war economy. In addition to the concentrator, the expansion project has involved significant investment in the rail infrastructure running between Tokadeh and Buchanan, upgrades to the existing port infrastructure including construction of an additional berth at the port in Buchanan, and other infrastructure investments including two power plants.
The expansion project, which is nearing completion, will see iron ore shipments increase from historic levels of approximately 5 Mt/y to 20 Mt/y in 2026, alongside improvements in product quality to higher grade, higher value ore. The company is also undertaking feasibility studies for further expansion of its iron ore asset beyond 20 Mt/y. For example, ArcelorMittal has ambitions to further expand capacity at its Liberian mining operations, with plans under development for a phased increase to 30 Mt of annual production capacity, and options being studied to produce DRI quality concentrate.
In more detail, ArcelorMittal Liberia has been operating at 5 Mt/y of direct shipping ore (DSO) since 2011 (Phase 1) and restarted construction of a concentrator and associated infrastructure (Phase 2). The operation now has a multiple product approach (sinter feed and concentrate) following a revised mining plan and additional investment in material handling, port infrastructure, covered stockpile and power supply. The revised scope allows for an additional 5 Mt/y of blended product, bringing total shipment capacity to 20 Mt/y (previously 15 Mt/y). By blending a portion of the new concentrate with crushed ore product, a sinter feed blend (>62% Fe) can be produced, increasing Liberia’s marketable production. Of the targeted 20 Mt, 75% or 15 Mt of sinter feed is to be made up of a blend of concentrate and crushed ore, and the remaining 25% or 5 Mt is to be high-grade concentrate.
The plan is to maintain these higher production rates, so ongoing studies are exploring options to expand the resource base of crushed blend ore, optimise mass recovery through the inclusion of regrinding and flotation circuits for the tailings, and increase concentrator capacity.
Mining is from open pit operations in the Nimba Range – where deposits consist of itabirites in a 250 to 450-m thick recrystallised iron formation. Although the iron deposits at Mt Tokadeh, Mt Gangra and Mt Yuelliton fit the general definition of itabirite as laminated metamorphosed oxide-facies iron formation, they are of lower iron grade than the ore previously mined at the Nimba deposit. Tropical weathering effects have caused the decomposition of the rock forming minerals resulting in enrichment in the iron content that is sufficient to support a DSO operation and accordingly, currently, only high-grade ore reserves of oxidised iron ore are mined. This ore only requires crushing and screening to make it suitable for export. The materials-handling operation consists of stockyards at both the mine and port areas, which are linked by a 250-km single track railway running from Mt Tokadeh to
the port of Buchanan.
The agreement makes provision for a multi-user agreement regarding the use of the rail infrastructure, where other users who wish to use this infrastructure are required to invest in its expansion in order to meet their transportation needs. ArcelorMittal is currently expanding the railway infrastructure so it can transport up to 30 Mt of iron ore annually, should the feasibility studies it is undertaking prove successful and a decision is taken to expand iron ore production beyond 20 Mt/y. This railway capacity will be reserved for ArcelorMittal’s use.
Under the terms of the agreement ArcelorMittal will pay US$200 million to the Government of Liberia for certain rights it acquires per the agreement, namely the mining rights extension and reserved access to railroad capacity the company is investing in.
Commenting, His Excellency President Joseph Boakai, said: “ArcelorMittal Liberia is one of Liberia’s largest private sector investors and a leading employer in the country. I welcome this Third Agreement to the concession agreement, which will unlock a major expansion of ArcelorMittal Liberia’s operations, with production increasing to 20 million metric tonnes and projected to grow to 30 million metric tonnes. The agreement will establish an independently operated railway from October 2030, which will strengthen efficiency, promote multi-user access, and deepen the overall impact of the concession on the national economy. The agreement will provide a significant boost to Liberia’s economy through increased employment opportunities and enhanced growth in host communities. I believe this new agreement is clear testament to Liberia’s investor friendly climate and the Government’s unwavering commitment to creating an enabling environment for businesses to thrive.”
ArcelorMittal Executive Chairman, Lakshmi Mittal, said: “This agreement represents a defining moment for both Liberia and ArcelorMittal. I must thank President Boakai and his administration for their commitment to this partnership which will reinforce Liberia’s role in Africa’s mining sector. Having recently inaugurated our state-of-the-art concentrator, the agreement further cements our long-term presence and commitment to Liberia. We are proud of the positive impact we have had on the country over the last twenty years and look forward to many more years of successful partnership and shared ambition to create sustainable growth and secure long-term benefits for Liberia’s economy and people.”
ArcelorMittal has made a significant impact on the development of Liberia’s economy over the past 20 years. It currently provides direct and indirect employment for approximately 8,000 people, is one of Liberia’s largest tax contributors and has made investments in a variety of housing, healthcare and education projects.
The amended agreement will deliver greater benefits for communities near ArcelorMittal’s operations and sets the stage for transformative economic growth in Liberia. Over the next 25 years and beyond, Liberia will see a substantial rise in royalties and tax revenues due to ArcelorMittal’s significant investment and expanded iron ore production. The quadrupling of output and exports in 2026 will drive Liberian GDP and deliver wide-ranging economic benefits, including creating new opportunities for local procurement and stimulating the growth of small and medium-sized businesses nationwide.
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