By E. J. Nathaniel Daygbor in Monrovia
Until recently ArcelorMittal had easy ride even while it failed to keep its part of the contract under the concession agreement to pave the road from Ganta to Sanniquellie and Yekepa in Nimba County, but the Government of Liberia, under President George Weah is getting tough with the multi billion dollar company.
The Ministry of State for Presidential Affairs and other relevant agencies have summoned the management of Arcelor Mittal for a conference for the company alleged breach of contract to adhere to some portions of the concession agreement signed with the government.
The senior management of Arcelor Mittal is expected to appear at the President’s temporary office at the Foreign Affairs Ministry on Tuesday, May 1, 2018. This will be second conference between the Weah administration and AcelorMittal.
A highly placed source within the Executive Mansion says the Arcelor Mittal had an agreement to pave the main road from Ganta City through Sanniqullie to Yekepa, but since the signing of the contract Arcelor Mittal has reneged to honor that agreement.
The agreement states that Arcelor Mittal is to provide US$40 million while the Liberian government provides US$10 million. The government has made available her part of the deal about three years ago, but Arcelor Mittal is yet to live up to the deal, only dishing US$400,000 for the road project.
The company blamed the delay to commence paving the road on the Liberian Government and that says the delay is US$400,000 which amount is expected to grow higher as long the deal is stalled.
Also, in the concession agreement is to construct two concentration sites from processing of iron ores before shipment, but ArcelorMittal is yet to commence the construction of these sites.
Our source intimated that the ArcelorMittal ship the raw ore to the international market, which is one of the major contributing factors that led to the Liberian ore being sold at a lower price.
On January 25, 2013, the Ministry of Public Works and the world’s steel giant, ArcelorMittal, signed a deal for the full pavement of the Ganta-Yekepa highway in Nimba County.
The total value of the project is US$40M, which was to be provided by ArcelorMittal Liberia while the government’s infrastructural arm, the Ministry of Public Works, will provide US$10 million and will supervise the implement of the project.
