The Liberian government has signed a$2.6 billion agreement with a Chinese company, China Union, to excavatefor iron ore at the country's western former Bong Mines. The agreement, signedThursday, is said to be the biggest ever investment in Liberia.
InformationMinister Lawrence Bropleh says the deal is expected to generate between 3,000to 4,000 jobs with an additional 15,000 indirectly. He told VOAthe investment deal with the Chinese company is part ofPresident Ellen Johnson Sirleaf's economic revitalization program.
"Thiswill go to the heart and soul of creating more jobs for our people and astronger spur for the economy. China Union was among several companies that putout the bid and won. Through diligence, a development agreement was puttogether by the negotiating team of the Liberian government and that of ChinaUnion. It has now been signed by President Sirleaf and it's being forwarded tothe national legislature for ratification," he said.
Thedeal would allow China Union to operate Liberia's former western Bong Mines,which before the civil war was operated by the German-owned Bong MiningCompany.
Broplehsaid Liberia is expected to accrue several benefits from the new investmentdeal with China Union.
"Thereare lots of benefits that will come to the Liberian nation and people. Severalof them would be one, creation of jobs, two, the railway from Bong Mines toMonrovia will totally rehabilitated and the trains will then be able to move upand down not just carrying ore to the port of Monrovia for export but alsopassengers and goods. Additionally,China Union in that agreement will also create and produce electricity not justfor their operation but also for residence in the area," Bropleh said.
Hesaid China Union would begin work after the Liberian legislature has ratifiedthe agreement.
Bropleh said the deal is expected to generatebetween three to four thousand jobs with an additional 15,000 indirectly.
"Weare hoping that within the next few weeks we can get this ratified so that thecompany can start up. But there are some early start-up operations. We estimatethat there will be well, well over three to four thousand jobs that will becreated for our people throughout the country where operations attached to thewestern cluster will be done," Bropleh said.
TheLiberian government came under criticism last year for allegedly showing favoritismin awarding another concession agreement involving Tata Steel, the world'sfifth largest steel maker and Johannesburg-based Delta Mining ConsolidatedCompany. The Ministry of Lands, Mines and Energy denied the allegations.
Broplehsaid the China Union deal was competitive and transparent.
"Itwas done in line with our public procurement and Concession Commission rules;it was done on the international level. It was put out and the time was givenfor many companies to apply, many of them did. China Union won the bid. You canimagine the last time the last time we had a situation where Delta Mining andTata [Steel] had some complaints. This was a situation that we learned from theprevious experience," Bropleh said.
Hedismissed suggestions that President Sirleaf was looking mostly East in herefforts to revitalize Liberia's economy after 14 years of civil war.
"Chinaunion deserves it; China Union put out the expression of interest and ChinaUnion won through a fair process. Liberia is doing business with everybody fromaround the world. Because we operate within the comity of nations, there willbe no exclusionary clauses that will say that one group of company from onepart of the world cannot participate. This is not the new Liberia that we are workingtoward," Bropleh said.