Wednesday, November 04, 2009

Liberia's Biggest Ever Mining Concession Agreement

IN THE NEWS

Chinese mining firm to begin operations in Liberia soon
African Press Agency
15:35:44

APA-Monrovia (Liberia) The Chinese company, China Union, which earlier this year signed a US$2.5 billion mining concession agreement with the government of Liberia has assured the Liberian people that it would still go ahead with its operations in the country, despite the global financial crisis that has slowed down the company’s operations.

Presidential Press secretary Cyrus Badio told reporters Tuesday that China Union assured that it would begin full-scale operations shortly, now that there are positive indications that it is overcoming the negative effects of the global financial crisis.

Addressing reporters on the China Union and Arcelor Mittal Concession agreements, Badio admitted that the effect of the economic meltdown to some extent affected the company’s operations.

He however added the Chinese company has informed the Liberian government that it has begun to overcome the effects of the global financial meltdown.

Following the signing of the multi-billion dollar mineral agreement with the Liberian government, China Union began dragging its feet in executing the terms of the agreement, including delays in paying a US$45 million signature fee to the Liberian government.

Chinese Ambassador to Liberia, Zhou Yuxiao admitted that the company was dragging its feet because it was adversely affected by the global financial crisis.

TSS/ad/APA
2009-11-04

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