The government of Liberia has signed a memorandum of understanding (MOU) that will see the transshipment of iron ore from neighbouring Guinea. The agreement signed with a Singaporean company, Al Khaldiya Mining Private Ltd., will see some 789 million tons of iron ore transshipped to the West African country from the company’s Diecké project in Guinea, which is just 2km north of Ganta, Nimba County, through the Yekepa-Buchanan rail line.
“We are very happy to sign this MOU with the Liberian government,” according to Al Khaldiya Mining Private Ltd CEO Rohan Patnaik, they are happy to sign the MOU with the Liberian government because it will enable them to work with both Liberian and Guinean workforce including the private sector, which will benefit all parties.
“The Transshipment of iron ore will provide a significant number of jobs including jobs in the trucking, spare parts, the Port of Buchanan and other markets in the mining supply chain of the mining sector. This is a win-win situation and we will make sure there are no losers,” he affirmed.
Boost revenue and spur economic growth
Furthermore, he added that, the transshipment will generate much-needed revenue and spur growth of the mining sector, which, the World Bank estimates, will grow by 7.8% this year due to increased gold and iron ore production. “The company would conduct a comprehensive assessment of the environmental and social impacts of the iron ore transshipment on local communities and forest for the transshipment project, Patnaik assured.
Al Khaldiya, a private company backed by a Kuwaiti investment, is expected to export between 4-10 million tons of iron ore through the Port of Buchanan in each of the 25 years it is expected to operate the Diecké project. The deal is expected to enable Liberia generate millions annually.