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The House of Representatives has given its approval to the Concession and Access Agreement (CAA) involving the Government of Liberia, Société des Mines de Fer de Guinée (SMFG), and Ivanhoe Liberia Limited, an agreement set to reshape regional transport and mining operations.
Lawmakers reached the decision on Thursday during the 17th Day Sitting of the 3rd Quarter of the 2nd Session. Their vote followed the submission of a detailed report from the Joint Committee on Investment & Concessions, Judiciary, Ways & Means, and Good Governance, which had been tasked to scrutinize the agreement and advise plenary.
The Joint Committee’s findings stemmed from an in-depth review of the CAA signed on July 5, 2025, along with testimonies from members of the Inter-Ministerial Concessions Committee (IMCC). According to the report, the relationship began in 2021 when the Ministry of Transport issued SMFG and Ivanhoe a conditional Right of Access to transport Guinean iron ore through Liberia.
Negotiations between the IMCC and the concessionaires culminated in a formal agreement, later endorsed by the Ministry of Justice, approved by the President, and forwarded to the Legislature for ratification.
Under the CAA, SMFG and Ivanhoe Liberia Limited receive a 25-year right to move iron ore from Guinea using Liberia’s existing railway and the Port of Buchanan. In return, the companies are obligated to expand rail capacity and modernize the Buchanan Commercial Quay to ensure safe, multi-user access.
The agreement also establishes Liberia as a transit corridor for industrial goods heading to Guinea, with the government earning a 1.5% customs user fee on imports and an annual US$500,000 customs transit fee.
Infrastructure Commitments
The CAA outlines two major investment phases:
Phase 1: More than US$64 million in initial rail and port enhancements
Phase 2: Roughly US$888 million to expand rail capacity and upgrade port infrastructure
Together, the investments approach nearly US$1 billion for Liberia’s transport network.
Financial Benefits for Liberia
Beyond infrastructure, the concessionaires commit to a series of payments to government:
US$1 million within 10 business days of signing
US$10 million within 10 business days of the Effective Date
US$15 million on the Commencement Date
US$2.33 million upon passage of the NRA Act
US$3.33 million upon appointment of the Independent Operator
Another US$3.33 million on the first anniversary of the appointment
Additionally, Liberia stands to earn from:
Rail Access Fees ranging from US$1.55 to US$1.95 per ton
A Cross-Border Transit Fee of US$0.10 per wet ton
More than US$1 billion in projected rail fee revenues
About US$176 million in taxes and duties
A previously advanced US$37 million remains non-refundable unless access is ultimately denied.
Community Support and Social Commitments
The agreement also establishes a long-term Community Development Fund estimated at over US$110 million:
US$1 million in Year 1
US$1.5 million annually in Years 2 and 3
US$2.5 million annually in Years 4 and 5
US$5 million annually from Year 6 onward
Communities along the Yekepa–Buchanan corridor are expected to benefit through job creation, business opportunities, and social programs. The CAA also mandates adherence to Liberia’s environmental, health, and safety standards.
Ivanhoe Atlantic has already completed an Environmental and Social Impact Assessment (ESIA), which has been submitted to the Environmental Protection Agency. The assessment included broad consultations with impacted communities and includes grievance and mitigation plans.
Project Timeline and Rail Management
If implementation proceeds as planned:
Project development will begin in 2026
Shipment of 2–5 million tons of ore is expected by 2027
Output could rise to 30 million tons annually after feasibility studies
ArcelorMittal Liberia will continue as operator of the rail line until September 23, 2030, after which a neutral Independent Operator under the National Rail Authority will oversee the multi-user rail system
IMCC’s Position
IMCC representatives emphasized that the agreement will:
* Increase national revenue
* Create jobs, both directly and indirectly
* Expand rail infrastructure
* Deepen regional economic integration
* Promote transparent, multi-user rail governance
The Joint Committee concluded that the CAA aligns with Liberia’s development goals and those of regional blocs such as the Mano River Union and ECOWAS. It therefore recommended full ratification.
Following open debate, a motion by Montserrado County District #2 Representative Sekou Kanneh received support from Plenary, officially passing the agreement to the Liberian Senate for concurrence.
