Key officials in government as well as key ministries are said to be undermining investment opportunity in demands of kick-back from investors. A US$3 billion investment establishment intended for the country is said to be stalled due to the creation of unnecessary bottlenecks by institutions of government.
Investigation shows that two separate major investment packages, the Western Cluster Iron Ore deposits worth USD$1.5 billion and the Bong Range Iron Ore Deposits, also worth US$1.8 billion, are still pending at the Ministry of Lands, Mines and Energy, despite reported readiness of investors to infuse needed capital.
Information gathered by this paper say several officials of the Ministry of Lands, Mines and Energy are in the constant habits of abandoning the Inter-Ministerial Mineral Technical Committee (IMMTC) meetings.
Accordingly to reports received, the ministry’s representatives on the IMMTC on Tuesday, failed for the second time in succession to attend the IMMTC meeting which meant to discuss two investment packages.
Members of the IMMTC, chaired by the Ministry of Lands, Mines and Energy, include the Ministries of Planning and Economic Affairs, Labor, Justice, National Investment Commission and Central Bank.
On May 7, 2007, the Lands, Mines Ministry put out a bid for the Western Cluster Iron Ore Deposits composed of several deposits covering about 207.58 square kilometers.
The Western Cluster according the biding document, consists of the Mano River Iron Ore Deposits (former National Iron Ore), The Western position of Bomi Hills Iron Ore Deposits (former Liberia Mining Company and the Mountain Iron Ore Deposits).
Also, on Monday, June 25, 2007, the Lands, Mines and Energy Ministry published another ‘Expression of Interest (EOI)’ for the Bong Range Iron Ore Deposits covering 352 sq/km.
The concession consists of the entire Bong Range iron ore deposits and the rail and port areas to be fully delineated. According to the document, successful company will be required to mine and manage the concession for a minimum period of 25 years with the option of renewal for additional agreed periods.
Paragraph seven of the EOI states that “Pre-qualified applicants shall be required to pay a non-refundable bid fee of US$10,000.00 prior to being granted bidding documents.”
The EOI also states in paragraph six that “upon receipt of EOI from prospective concessionaires, the Ministry of Lands, Mines and Energy and sector-related agencies shall evaluate and pre-qualify applicants.”
For the Bong Range Iron Ore Deposits, the IMMTC following conclusion and evaluation of Expressions of Interest (EOIs) submitted by interested companies short-listed the following companies: BSG Resources Limited; CHINA Union Investment Co. LTD; BELLE Resources, LTD; Rio Doce S.A.; and VEDANA Resources, PLC.
For the Western Cluster Deposits, the IMMTC also listed seven companies out of 14 expressions of interest. The seven companies are Delta Mining Consolidated PY, Sinosteel Corporation, Xingxing Group Co, Tata Steel, Rio Doce South Africa and Bahlodi Africa.
Our investigation also shows that since the qualified companies submitted their EOI for the Western Clusters and Bong range Iron Ore Deposits, the ministry has been reluctant in giving these selected and pre-qualify company their tender documents for a bidding exercise.
Other information also gathered say it has been more than seven weeks since the interested companies submitted their EOI to the ministry, without any response regarding invitation for biding.
Political pundits who spoke to journalists alleged that failure on the part of authorities at the ministry to allow pre-qualify companies to submit their tender documents is an attempt to undermine the US$3 billion investment packages and deprive jobless Liberians the opportunity to seek employment and carter to their family.
Others observe that anything contrary to this would amount to reverting to the practice of “business as usual. In the wake of the reported show of lack of interest, analyst say the Ministry of Lands, Mines and Energy and IMMTC need to speed up the process.
The prospect of a strong price rise also comes as China and other Asian emerging countries are set to continue their rapid expansion. Despite our investigation, Lands, Mines & Energy Minister Eugene Shannon told journalists on Tuesday that several companies have been pre-qualified to bid for the Bong Range Iron Ore Deposits and the Western Cluster Deposits.
He failed to give the names of the companies that are qualified neither did he give the date for the submission of tender documents.
Minister Shannon told journalists that the winners for the Bong Range Iron Ore Deposits and Western Clusters would be announced at the end of December 2007 but did not say when the companies would begin the submission of tender documents or the date the winners would be announced.
Dr. Shannon Fears Cursed Resources
By D. Sonpon Weah, II
Lands, Mines & Energy Minister Eugene Shannon wants Liberians to hope for more job opportunities and development through the attractive industries, but was quick to caution Liberians to be mindful of curses often imposed on the people and countries by these same mineral resources.
According to him, development and job opportunities are awaiting Liberians in the attractive industry, but that the government was carefully handling these opportunities so as to avoid curses.
Dr. Shannon made the statement Tuesday during the re-dedicatory ceremony of the newly renovated head office of the Liberia Electricity Corporation (LEC) in Monrovia.
The unveiling of the plaque to the main building was done by American Ambassador Donald Booth.
Both Ambassador Booth and Minister Shannon, among others toured the quadrangle building containing training room and warehouse. The tour also took them to the third floor which is host the ‘Data Center,’ Central Office and the Conference room.
Amb. Booth, said Liberians can build strong hope in the attractive industries, but warned that resources curse should not be allowed.
“You had it, you misused it. And so you never develop from it. That’s why we saying that we should be ware of the resources curse in Nigeria and many places in Africa and the world.
He admitted that Liberia is full of marketable mineral resources that must benefit everybody in the country. Under its economic pillar, Dr. Shannon said, the government intends to eradicate 85 % unemployment rate nationwide through the attractive industries.
Speaking on the issue of unemployment, Minister Shannon said the government opened up Mittal Steele and this company providing 30%– 70% Liberians occupying top managerial level jobs excluding the thousand others employed at other levels at Mittal Steele.
He said, in five years, Mittal steel would hire equally qualified Liberians at the top managerial levels. He disclosed that this December the government would shortlist or choose a company among nine others to operate the Western Cluster comprising Bomi Hill, NIOC and others at the western front.
By the end of January 2008 he said the government would open Bong Mines in the central front. He said some nine companies submitted documents called “expression of Interest” to government.
Minister Shannon disclosed further that the government plans to open the eastern areas comprising Grandkru, River Gee, Maryland counties where alumina bauxite or alumina oil had since been discovered in the mid 1970.
The Western Cluster comprises Liberia Mining Company (LMC) and the National Ironic Ore Company (NIOC). He said this cluster contains over 6000M tons of iron ore reserved, among others.
Minister Shannon assured the audience that the government will electrify the entire country with six years through bites and pieces We need reliable, sustainable and cheap energy for our people because they too are part of Liberia and so must enjoy electricity.
The Managing Director of LEC, Harry Yuah and LEC board Chairman, Mr. Dunstan Macauley thanked USAID and IRG and other partners for their support to LEC. They pleaded for more assistance that would make LEC commercialized. |
