Raping of Liberia’s minerals?

People,

We seem to be on a bumpy road, with ups and downs coming at us fast. We are in a good news bad news cycle with regard to natural resources. We cannot vouch for the veracity of the report (below) from Southern Times Africa, but it is quite serious.

American Mining Associates has been in the news for years. Is there anyone out there that can corroborate this stuff?

Thanks.
Anthropogenicagent

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Raping of Liberia’s minerals
Southern Times Africa
Oct 29, 2009

The raping, observers say, is ignoring recent announcement by the Sirleaf Administration that all inherited concessionaire agreements and rights were suspended for review.

According to them the raping was going on at the time the United Nations, EU, and other members of the donor community are adamant that they would contribute to efforts to jumpstart the Liberian economy only if Liberia showed indications that it has control over the exploration and exploitation of its mineral and forest resources and that the revenue generated from such economic activities would benefit the majority of Liberia's impoverished population.

Perhaps it is in realisation of where the international community and the Sirleaf Administration stand on the issue of mineral tapping versus appropriate legislation that prompted the locals in the Kungbor District to express outrage, this week, at the wild abandon with which local certificate-brandishing miners and the American Mining Associates (AMA) were ravaging and ripping diamonds and other hard currency earners with no regards for the welfare of operation areas.

Mohammed Swaray, a local community development chairman, is outraged over an alleged illicit diamond mining operations of the American Mining Associates (AMA) in Kungbor District in Gbarpolu County.

Like Mohammed, several citizens of the district are also not happy about the AMA activities. The citizens said it is preposterous that AMA continues to carry out mining activities in their district while the United Nations' ban on diamond and timber industries is still in force.

According to them, AMA was indiscriminately and illicitly exploiting the diamond deposits in the region especially near Kungbor, a town along Liberia's border with Sierra Leone.

Each day, they told our reporter, gigantic earthmoving and mineral washing equipments belonging to AMA were seen gulping precious gems from the land without reference to them or regard for their welfare. "What is perplexing about the massive digging of the diamond here is that Government is not doing anything to arrest the illicit mining," a youthful resident in Kungbor told The Analyst.

"In fact, it is a matter of time before AMA begins razing some villages that prospectors believe are sitting on diamonds. There are threats by the company to relocate villages forcibly so that it can have access to what it claims to be gems upon which the villages are situated," said Sarnor Kollie who called himself 'concerned citizen'.

What was angering most citizens, according to Kollie, was that individuals claiming to be agents of the Ministry of Lands and Mines were aiding and abetting the raping of the gems without bothering to explain to the locals what was happening and how they would benefit in keeping with the new political and economic dispensation that the Sirleaf Administration has been preaching.

The residents specifically accused Charles Dagoseh, Director for Mines, and James Konuwa, Assistant Minister for Mines of the Ministry of Lands Mines and Energy of aiding and abetting the AMA exploits.

Town Chief Vaniba Sheriff told The Analyst during a day-long investigative tour conducted by The Analyst over the weekend that AMA headed by Gene Bryge and a Lebanese, Alieyou Ussuf, and his Liberian wife Muna Ussef are involved in illicit mining, an act the chief described as a violation to the UN security sanction on diamonds.

Chief Vaniba said they are operating in the Liberian forest with the alleged approval of Dagoseh and Konuwa, officials of the ministry. "The only thing that is hurting me is that AMA claims it has bought the entire town and therefore request that citizens vacate or be expelled,"

the chief said. "Where does this American company expect us to move to? Is it serious for us to leave the town of our forefathers and be displaced in our own county?

Government needs to come out with an investigation and a solution in this serious matter. If the Government feels that sanctions hovering over the country are not important, we the citizens matter." He said despite the illicit mining activities in the county, the AMA has refused to help the locals improve their livelihood by employing them.

According to him, the management instead has chosen to employ Sierra Leonean, Malians, and Mauritanians. Mr. Sheriff said on several occasions the citizens attempted to disrupt the operation of illicit mining in the county but that Messrs Dargoseh and Konuwa, upon receiving the information about the citizens' plans, immediately dispatched personnel of the Liberian National Police to provide security for the AMA operation.

"Mr. Journalist, go and see the sophisticated mining equipment that AMA is using to mine diamonds in the district despite the fact that Liberia is under UN diamond sanctions," the chief said. "We want the president to know about the illicit mining activities in this district. Go and see the open holes they dug and left behind and see how many more they dig daily and think what will happen when this continues for the next five to ten years."

Indicating that AMA was not doing anything in the interest of citizens despite the exploitation, he said the company failed to construct the drinking well it promised residents two years ago.

He said without doing anything to address the failure to make good its promise to the residents, employees of AMA were, without remorse of conscience, drawing drinking water from a hand-pump installed by German Argo, an international non-governmental organization operating in the area. According him, residents of the district have realized too late and at their disadvantage that AMA was using the well promise as a cover to conduct mineral exploration in the area. He said haven't noticed that no diamonds were at the location marked for the hand pump AMA began the damaging of gravesites in search of diamonds. "They even dug up the recreation center built for our children," he said.

Raymond Kpoto, Chairman of the Kungbor District Youth Association, said the operations of AMA were intended to endanger the assistance the international community promised to provide for the Sirleaf Administration, adding, "My county will be seen as a defiant society amongst the comity of nations." The AMA claimed to have built bridges, schools, markets, shelters of the locals, offices of immigration, but nothing has been done in the district, he said.

"The AMA alleged that they have purchased the entire clan from the Lands and Mines Ministry. Because of that, they put their security forces on the alert to arrest and detain anyone caught mining in the area.

Sometime their security people are assisted by some officers of National Police who are acting on the directive of assistant minister-designate James Konuwa," said one resident.

He said the AMA security guards, headed by one Eric Doe III, were wearing army uniforms and carrying handcuffs. According to some residents who spoke with our reporter, security guards of AMA were in the habit of ill-treating and intimidating those who dare mine diamond or challenge their right to mine in the area. "I am not in support of the AMA operation. They came here before the war, but they failed to do something positive for this district," said Kungbor District Development Chairman Mohammed Swaray. He added, "We expect any company besides the AMA to engage in development initiative that will help the county. In fact nobody or company is suppose to mines because Liberia is right now under sanction on diamonds." Some illicit miners in the area, according to the residents, are Abdul Kamara a Sierra Leonean who said he is operating on the license of his boss, Bakasa Jarbie, a Malian.

The AMA Manager, Gene Bryge, has meanwhile denied allegation that his company was mining diamond in the district. He however confirmed allegations that the AMA security guards were arresting 'illegal miners' and claimed to have invested million of dollars in the development program of the county without saying in what he invested the money.

Ministers Dagosi and Konowa, when asked for comment, referred our reporter to the minister proper. "We can not talk now until the minister gives us the authority to speak" they told our reporter. Investigation continues.

© 2009 Southern Times Africa

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Good News in the Extractive Indistries

In a press release last week the government announced some very progressive legislation:

Extractive Industries Transparency Initiative Bill Signed Into Law
Liberia Government (Monrovia)
10 July 2009


President Ellen Johnson Sirleaf has signed into law 'An Act establishing the Liberia Extractive Industries Transparency Initiative (LEITI).'

The new law will assist in ensuring that all benefits due the Government and people of Liberia for the extraction of the country's mineral and other resources are paid and duly accounted for.

In remarks at the signing ceremony, President Johnson Sirleaf described the law as one that strives for accountability. The President spoke of the importance of the new law, noting that it requires all investors in the extractive industry, including mining and forestry, to periodically report on all official and unofficial payments made to civil society

The bill was presented to the President on Friday at the Foreign Ministry by members of the House and Senate Joint Committee on the Executive in the National Legislature.

Present at the ceremony were Senate Executive Committee Chairman and Gbarpolu County Senator Daniel Naatehn; Grand Bassa County Senator Gbezhongar Findley; Bomi County Representative Haja Fata Siryon; Nimba County Representative Nohn Kidau; Lofa County Representative Malian Jalebah; Finance Minister Augustine Ngafuan; and Minister of State for Economic and Legal Affairs, Morris Saytumah.


Copyright © 2009 Liberia Government.

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EarlyBird

Acelor Mittal gives Legislators 100 vehicles

Thanks a lot Acelor Mittal. The Legislature receives the gift and the people get stiffed.

Then again the audacity of our Legislators is astounding, testing the vehicles by taking a rides in "their" brand new Mitsubishi pickups in the compound of the Capital building. As far as we can tell, not one of our lawmakers turned the gift back. Have they no shame at all.

The acceptance of the vehicles by the lawmakers has raised concerns in the public given the direct source of the donation, Acelor Mittal. Some legislative analysts believe the donation by Acelor Mittal is an indirect form of inducement for future help to the Company.

The credibility gap is growing and the faint whisper of "growth without development" is growing louder.

The people deserve better.

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Anthropogenicagent

Due Diligence Exposes Several Bidders For Forest Concession

Wow... this stuff is working! (story below) We are getting the front side of the deal right. All that remains is to follow through.....


Due Diligence Exposes Several Bidders For Forest Concession
The NEWS (Monrovia)

NEWS5 August 2008 Posted to the web 5 August 2008
By George BardueMonrovia

The Forest Management Contract (FMC) Due Diligence Committee has submitted its report to the Inter-Ministerial Concession Committee (IMCC) on the financial and technical capabilities of companies that submitted bids for logging operations in Liberia.

The bids, which were publicly opened for three Forest Management Contracts on April 21, 2008, brought 13 companies bidding for different categories.

Following the bidding process, the Concession Bid Evaluation Panel placed seven companies in the "A" category, three for the "B" category and another 3 in the "C" category with the Tropical Reserve Entrepreneurial Enterprises (TREE) scoring 95 percent.

However, when Due Diligence was conducted on the companies, the Committee discovered that TREE did not provide substantive financial and technical evidence although the Bid Committee declared TREE as provisional winner in the "A" category.

The prequalification standards for a medium FMC require US$15 million in capital including cash and equipment.

The Due Diligence committee's report indicated that TREE claimed to have vehicles and equipment valued at US$1.9 million, adding "it presented bank statement showing funds totaling US$0.3 million. This leaves a net financing requirement of US$14 million. "

In addition to financing its own operations, the Due Diligence Committee noted that TREE has committed itself to finance the operation of five timber sales contracts, three by B&V Timber Company and two by Tarpeh Timber.

The committee said they found out that over the first six months of operations, these companies together will require about US$1.2 million in investment funds.

However, TREE was asked by the Forestry Development Authority (FDA) to provide evidence of additional funds to support five timber sales contracts but it failed to do so, the Due Diligence Committee noted in its report.

The Due Diligence Committee's report also indicated that TREE offered no evidence of financial capability.

"TREE had entered into an agreement with firm named Tropical Africa Business wherein the latter committed to provide US$1.0 million in equipment and spare parts. TREE has also entered into an agreement with a firm named Ningbo Jujin Investment Company Ltd. of the People's Republic of China wherein the latter committed to provide US$2.5 million in equipment and funds," the Committee pointed out.

But it said that these agreements provide an amount far short of the US$14 million required.
The Due Diligence Committee also observed that the agreement with Tropical Africa Business, along with the commitment of US$1 million seems to be flawed.

The Liberia Tree and Trading Company, a declared winner of category "C" of the Forest
Management Contracts with 85 percent also underwent due diligence and participated in the bidding process.

According the Due Diligence Report, the Liberia Tree and Trading Company owed government US$165,000 in back taxes for which the Ministry of Finance advised FDA not to enter into a contract with the company until the matter was cleared.

On the issue of technical capability, the Committee reported that the Liberia Tree and Trading Company holds no equipment, either owned or leased.

"In its business plan, the company indicated that it would lease all of its logging equipment from Logs & Lumber, a Ghanaian company and a parent of Eco Timbers. In discussion with the FDA team in May 2008, the firm indicated that the equipment would be leased directly from Eco Timbers," the report disclosed.

Additionally, the Due Diligence report noted that FDA requested for a copy of the lease agreement or other evidence of Eco Timbers' commitment to provide equipment along with evidence of Eco Timbers' control over the equipment that it proposes to lease.
Touching on the financial capability of the company, the committee found out that the company has a cash bank balance of US$0.1 million as of June 16, 2008, adding "unaudited financial statements shows net assets of US$0.3 million as of December 31, 2007."

"The business plan projected an investment of US$6 million, including equipment, to be made in the first five years of operation. This is to come from three sources: bank loan US$3 million; suppliers US$2.4 million and shareholders US$2.4 million," The Due Diligence Team said.
The FDA's Due Diligence Team in a discussion with the company on May 30, 2008, said it was informed that the capitalization plan was had changed and that a new investor in the firm, Ecotimbers, would lend the company US$6 million.

Of this amount, US$4 million would come from a loan from the Bank of Beirut to Ecotimbers, the Due Diligence Committee indicated in its report.

The winners of the Forest Management Contracts are yet to be announced by the Inter-Ministerial Concession Committee (IMCC).

When authorities at the Forestry Development Authority (FDA) were contacted, Public Relations Manager Anthony Varwen said all of the companies that participated in the bidding process demonstrated financial and technical capabilities.

Mr. Varwen told this paper that no company that did not provide evidence of their financial capabilities was given contract.

He said the Due Diligence Report is in the office of the FDA Managing Director John Woods and cannot be accessed.

Varwen disclosed three companies won the PFC bid but added that the FMC bidding process is still going on.

He noted that the due diligence report would be made public went the Inter-Ministerial Concession Committee (IMCC) approves it. He did not say when it would be approved.
Copyright © 2008 The NEWS.

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EarlyBird

Bit by Bit it Will Fit - ArcelorMittal / Rio Tinto

The other proverbial Shoe has dropped (See the Article that follows) and it is natural fit! They may be talking eastern Canada, but we are hearing eastern Guinea. The Canada program to expand mining and processing facilities in Labrador West and transportation capacity on the railway linking the mine with the port of Sept- Iles, Quebec will be a great trial run for Guinea-Liberia operations.

When (if) the Simandou project merges with the Liberia Operation across the border it will mean only one thing.... You will no longer have to travel to Guinea. It will come to you piece by piece, by rail through your back yard.

We may observe the full dress rehearsal in Canada but how about a little transparency now?

{article}

ArcelorMittal Says Rio Tinto's IOC Unit Would Be `Natural Fit'
By Dale Crofts
July 2 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, said it would be interested in acquiring Rio Tinto Group's Iron Ore Co. of Canada unit because the business fits with its operations in eastern Canada.


``If that kind of opportunity arose, I'm sure we'd take a look at it,'' Lou Schorsch, head of Luxembourg-based ArcelorMittal's flat-rolled business in the Americas, said yesterday in an interview in Chicago. ``That would kind of be a natural fit. We share a lot of infrastructure.''
ArcelorMittal is buying iron-ore plants in Canada and Liberia to counter the market power of BHP Billiton Ltd., Rio Tinto and Cia. Vale do Rio Doce. The three companies control about 80 percent of the world's seaborne iron ore and are raising prices to records. London-based Rio Tinto has said it plans to sell as much as $10 billion of assets this year.


Iron Ore Co. of Canada, also known as IOC, is ``a good operation and not on our short list of possible disposals,'' Rio spokesman Nick Cobban said today.


ArcelorMittal said in September it would buy the more than two-thirds of the Wabush Mines iron-ore venture in Canada that it doesn't already own from U.S. Steel Corp. and Cleveland-Cliffs Inc. for about $67 million. U.S. Steel and Cleveland-Cliffs ended talks to sell the stake in March, and ArcelorMittal has asked the Ontario Superior Court to force the transaction. ArcelorMittal is

``very confident'' it will complete the purchase, Schorsch said.


Wabush produces iron-ore concentrate in Newfoundland and Labrador and has port facilities on the St. Lawrence River's north shore, close to the operations of ArcelorMittal's QCM unit.
``Part of why we are interested in Wabush is because QCM is more or less right down the road,'' Schorsch said. ``Also right down the road is IOC that Rio Tinto owns.''


Rio holds a 59 percent stake in Iron Ore Co. and operates the business. Rio is spending about $475 million to expand mining and processing facilities in Labrador West and transportation capacity on the railway linking the mine with the port of Sept- Iles, Quebec.


To contact the reporter on this story: Dale Crofts in Chicago at dcrofts@bloomberg.net.
Last Updated: July 2, 2008 09:54 EDT


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Anthropogenicagent

Are We Ready to Move a Mountain?

Iron-ore activity in Liberia is taking off and we are at a jog and gathering pace. ArcelorMittal’s stated ambition is for an iron-ore output beginning in 2009 of 500,000t/y and increasing to as much as 25Mt/y by 2011. At the end of May, Russia’s Severstal reached agreement to purchase up to a 61.5% stake in African Iron Ore Group Ltd (AIOG), which owns, through subsidiaries, the exploration rights for an iron-ore deposit in Liberia’s Putu Range area. In addition, Severstal will acquire a 6.29% stake in Mano River Resources, which currently controls AIOG.

Just across the boarder in Guinea, Rio Tinto reported 2,259Mt of JORC-compliant iron-ore resources at its Simandou project on May 29. These resources are located within the Pic de Fon and Oueleba deposits which form part of the Simandou range in southeastern Guinea. The company is planning the development of the first production phase of 70Mt/y, potentially rising to 170Mt/y, subject to agreement with the government.

Mano River, Putu Range and even old "Poor Bone" (Bong Range) are largely unknown quantities. So let's focus on the Nimba Area. The largest operation in the late 1960's through the 1980's was the Liberian-American-Swedish Minerals Company (LAMCO), a joint venture that accounted for about half of Liberia's annual iron ore output at that time. LAMCO began shipping ore in 1963, when the port of Buchanan, which the company had constructed, opened for traffic. The mine's capacity was about 12Mt/y of ore at the start-up of operations. In the late 1970s output dropped to about 9Mt/y.

Again, at its zenith, the highest capacity handling through the LAMCO facilities completed in the early 1960's was 12Mt/y of ore per year. The big question as we move forward, is production going to out run the capacity to handle the material? 25Mt/y by 2011 is double the old capacity. Do they really expect to add another 70Mt/y to that? Nearly 100 Million tons per year is not going to move west across Liberian territory without someone taking notice. The Simandou project may be exporting an unacceptable environmental impact. Are we ready?

Is green our fame or is it the red dust on the green leaves?
Anthropogenicagent