Signing the Mineral Development Agreement
In 2005, ArcelorMittal Liberia signed the first Mineral Development Agreement (MDA) to allow the company to begin mining iron ore in the Yekepa and Buchanan concessions. This agreement was then renegotiated and amended in 2006.
The MDA carries stringent conditions regarding sustainable development and economic, social and environmental investment. Its aim is to ensure that, while foreign companies are able to generate a profit from their investment in the extraction of Liberia’s resources, the country and its citizens benefit as well.
Among other things, it stipulates that ArcelorMittal contribute $3 million a year to the county social development fund for Nimba, Bong and Grand Bassa Counties. This money, which over the 25-year expected life-of-mine will total $75 million, will be used to drive community development projects that will uplift and improve the lives of local people.
The company is also required to establish and maintain medical and education facilities in all areas of operation, to serve employees, their families and the broader community, and to prioritize the employment and development of local Liberians.
Alignment to our values
In both letter and spirit, the MDA is closely aligned to our corporate responsibility objectives of:
- Supporting socioeconomic regeneration and growth in our local communities and throughout Liberia
- Developing and strengthening an internal corporate responsibility governance and operational structure
- Building and strengthening partnerships with relevant industry stakeholders through proactive engagement
- Internalizing best practices on the environment, workplace, health, safety and good corporate governance in our business operations.