The West African country, Liberia, has signed a $2,6-billion agreement with a Chinese conglomerate, China Union, to develop what is described as its “main iron-ore mine”.

Also pursuing iron-ore in Liberia is the world’s largest steelmaker, ArcelorMittal, and South Africa’s Delta Mining Consolidated, which is taking legal action against the government of Liberia for not awarding Delta an iron-ore concession.

A report from the Liberian capital, Monrovia, sourced from the news agency AFP, describes the latest Chinese investment as the largest ever in the West African country headed by President Ellen Johnson Sirleaf.

The AFP report says that Sirleaf signed a mineral development agreement with officials from the Chinese mining company to develop the Bong mines.

The deal has been sent to Parliament for ratification.

Liberia’s National Investment Commission chairperson Richard Tolbert announced in December that China Union had promised to build a one-million-ton-a-
year-capacity operation at the Bong iron-ore mines, about 
150 km north of Monrovia, within 12 months.

He said 3 000 jobs would be created by the project, with up to 
15 000
following indirectly.

Delta has launched an appli-
cation in the Liberian Civil Law Court for the Sixth Judicial Circuit for judicial review of the government’s refusal to award it the Western Cluster Iron Ore Deposit concession, and has 
applied for an order preventing the government from reopening a bidding process for the concession.

Delta is also seeking a 
review of a ruling handed down by the Independent Complaints, Reviews and Appeals Panel of the Liberian Public Procurement and Concessions Commission 
regarding the government’s refusal 
to award Delta the concession.

Delta argues that the government’s purported reasons for not awarding Delta the concession have no basis in law.

The company also asserts that Liberian law does not permit the government to cancel a bid 
“without due process” once a provisional winner has been 
declared.

In February 2008, the government declared Delta the provisional winner of the $1,6-billion concession.

However, on September 14, it announced that it had taken a 
decision not to award the concession to Delta and to bar Delta participating in a rebid.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.