Amid Poverty, Huge Unemployment, US$3B Investment Blocked in Liberia
12/13/07 - Josephus M. Gray
Eugene Shannon, Minister of Lands, Mines and Energy, RL
Monrovia-n the face of efforts by President Ellen Johnson-Sirleaf to attract multi-million investments as a means of job creation aimed at reducing huge unemployment in the country, the President’s frantic efforts are bereft by obstacles from members of her ‘inner circle,’ with some government ministries and ministers reportedly serving as impediment for job creation.
One of such ministries, according to our investigation, is the Ministry of Lands, Mines and Energy, which is undermining the establishment of a US$3 billion investment in the country, amidst abject poverty and huge unemployment.
Our investigation shows that two separate major investment packages, the Western Cluster Iron Ore deposits worth USD$1.5 billion and the Bong Range Iron Ore Deposits, also worth US$1.8 billion, are still pending at the Ministry of Lands, Mines and Energy, despite the readiness of investors to infuse capital into these two areas.
Eugene Shannon, Minister of Lands, Mines and Energy, RL During our investigation, reporters gathered that the Lands, Mines and Energy Minister, Eugene Shannon and his principal deputies are said in the constant habits of abandoning the Inter-Ministerial Mineral Technical Committee (IMMTC) meetings. Accordingly, the ministry’s representatives on the IMMTC on Tuesday failed for the second time in succession to attend the IMMTC meeting meant to discuss the two investment packages.
Members of the MMTC which is chaired by the Ministry of Lands, Mines and Energy, include the Ministries of Justice, Planning and Economic Affairs, Labor, Justice, National Investment Commission and Central Bank.
Deposits covering 352 sq.km
On May 7, 2007, the Lands, Mines Ministry put out a bid for the Western Cluster Iron Ore Deposits composed of several deposits covering about 207.58 square kilometers.
The Western Cluster according the biding document, consists of the Mano River Iron Ore Deposits (former National Iron Ore), The Western position of Bomi Hills Iron Ore Deposits (former Liberia Mining Company and the Mountain Iron Ore Deposits).
Also, on Monday, June 25, 2007, the Lands, Mines and Energy Ministry published another ‘Expression of Interest (EOI)’ for the Bong Range Iron Ore Deposits covering 352 sq.km. The concession consists of the entire Bong Range iron ore deposits and the rail and port areas to be fully delineated.
According to the document, successful company will be required to mine and manage the concession for a minimum period of 25 years with the option of renewal for additional agreed periods.
Paragraph seven of the EOI states that “Pre-qualified applicants shall be required to pay a non-refundable bid fee of US$10,000.00 prior to being granted bidding documents.”
The EOI also states in paragraph six that “upon receipt of EOI from prospective concessionaires, the Ministry of Lands, Mines and Energy and sector-related agencies shall evaluate and pre-qualify applicants.”
For the Bong Range Iron Ore Deposits, the IMMTC following conclusion and evaluation of Expressions of Interest (EOIs) submitted by interested companies short-listed the following companies: BSG Resources Limited; CHINA Union Investment Co. LTD; BELLE Resources, LTD; Rio Doce S.A.; and VEDANA Resources, PLC.
For the Western Cluster Deposits, the IMMTC also listed seven companies out of 14 expressions of interest. The seven companies are Delta Mining Consolidated PY, Sinosteel Corporation, Xingxing Group Co, Tata Steel, Rio Doce South Africa and Bahlodi Africa.
Our investigation also shows that since the qualified companies submitted their EOI for the Western Clusters and Bong range Iron Ore Deposits, the ministry has been reluctant in giving these selected and pre-qualify company their tender documents for a bidding exercise.
Failure undermines $3Billion Investment
It was also gathered that it has been more than seven weeks since the interested companies submitted their EOI to the ministry, without any response regarding invitation for biding.
Political pundits hold the view that failure on the part of authorities at the ministry to allow pre-qualify companies to submit their tender documents is an attempt to undermine the US$3 billion investment packages and deprive jobless Liberians the opportunity to seek employment and carter to their family.
Other observers anything contrary to this would amount to reverting to the practice of “business as usual,” which James T.R. Jallah, a student of the University of Liberia Business College perceived as a clever attempt by some public officials to put self-interest above national interest.
A financial expert told FrontPageAfrica that presently, the price of iron ore is higher, therefore, the Ministry of Lands, Mines and Energy and IMMTC need to speed up the process.
The prospect of a strong price rise also comes as China and other Asian emerging countries are set to continue their rapid expansion.
Despite our investigation, Lands, Mines and Energy Minister Eugene Shannon told journalists on Tuesday that several companies have been pre-qualified to bid for the Bong Range Iron Ore Deposits and the Western Cluster Deposits.
He, however, failed to give the names of the companies that are qualified neither did he give the date for the submission of tender documents.
Minister Shannon told journalists that the winners for the Bong Range Iron Ore Deposits and Western Clusters would be announced at the end of December 2007 but did not say when the companies would begin the submission of tender documents or the date the winners would be announced.
FPA