ArcelorMittal X BHP Billiton = Railroad to the Atlantic

In the Story below keep in mind BHP is finally getting what it has been waiting for years (we will follow with the history later this week) to acquire. The question is do the people of Liberia get a fair share?!

EarlyBird


BHP, Arcelor in alliance talks over West Africa
Andrea Hotter
The Australian
January 20, 2010 12:00AM

STEEL giant ArcelorMittal and miner BHP Billiton are discussing combining their iron ore interests in Liberia and Guinea, creating a platform for a West African iron ore business.

The assets include BHP's 43.5 per cent interest in Guinea's Euronimba, which owns 95 per cent of the Nimba project, including exploration leases at Dieke and Nimba North, as well as the miner's four Liberian leases.

Also at stake is ArcelorMittal's 70 per cent interest in five Liberian leases and rights to upgrade Liberia's Yekepa-Buchanan railway and Panamax port.

Talks to combine the assets were expected to take several months, and the companies were seeking the support of the west African governments, BHP said.

"At this stage it is premature to comment on the nature of the overall investment. We are at early stage of reviewing the opportunities and development options," a BHP spokeswoman said.

Mining companies have had a rough ride in Guinea since the death of longtime dictator Lansana Conte in December 2008.

Junta chief Captain Moussa Dadis Camara seized power but the self-appointed president's behaviour became increasingly autocratic.

Holding negotiations with international mining companies live on national television, he threatened to close mines and confiscate projects.

The country now has an interim leader, General Sekouba Konate, after Dadis fled following an assassination attempt.

Dow Jones Newswires

Reverse Liberia's Brain Drain - Promote Brain Gain

We applaud Senator Wotorson's interest in hiring policies at mining concessionaire Arcelor Mittal. (see 15Aug2007 STAR RADIO story:
"Senator Wotorson wants MITTAL Steel employment criteria reviewed")

However, he left out an element that could be a windfall benefit for Liberia. As long as the government is reviewing the criteria set up by
Mittal Steel for the recruitment of its personnel to the advantage of young college graduates in country, let us not discount the Liberian
Diaspora.

Don't forget there are many Liberians in foreign lands waiting on the opportunity to come back to Liberia to finally contribute to the
economy of their home. The hiring criteria must not only concentrate on the young college graduates. Of course we should pay attention to their
rapacious hunger for employment opportunities at Arcelor Mittal, but we should strike a balance. Reverse Liberia's brain drain, promote brain
gain.

We have not forgotten that is these are the same young collegians who were so hasty to except an early ill-conceived deal with Mittal Steel
hoping for employment. Thankfully, cooler heads prevailed. If not Liberia would have made an embarrassing error, stopping short of
recognized world standards for mining development.

Let's ask for both managerial training for the young folks and employment for the seasoned experienced perspective employees. This is
exactly the kind of diversity in the work force Liberia needs now.

In addition, let us not lose focus on the expansion of non-manager positions. Development of skilled tradesmen is what will give Liberia
the edge to break the pattern of growth without development.

Anthropogenicagent

Reverse Liberia's Brain Drain - Promote Brain Gain
Reprinted from http://www.liberianature.blogspot.com/

BIG DEAL

President Ellen Johnson-Sirleaf has signed into law the MineralDevelopment Agreement (MDA), giving Mittal Steel, the right to beginmining operations at the former holdings of the LAMCO JV Company inNimba and Grand Bassa counties.

The Liberian leader said, "And now Mittal Steel can go to work, createsjobs for our people so that they fetch income for themselves." Congratulations!

Of course we do not know all of the secret clauses agreed to in NewYork and Monrovia, but we have a better deal then ever before. This isa major milestone for Liberia. The ratification and signing of the MDAsays to the world, we are open for business on an equitable basis. Wewill no longer neglect our citizens or the environment.

The delay was worth it, but the struggle continues under the new termsof the MDA. In the May 8 article in The Analyst (Monrovia), it statedthat it was time for Mittal Steel to "show its juice," Indeed they arethe biggest pineapple in the bunch. However, the folks that need tostep forward to show what they are made of are the Liberian people.One, to not squander this opportunity, and two, to hold Mittal to thedaylight clauses of the contract that promote their corporate socialresponsibility and environmental conservation pledges.

Mr. Joseph Matthews, General Manager of Mittal Steel Liberia, we holdyour foot.

Anthropogenicagent