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The missing iron ore
in
Liberia
concerns us all!
By Yini Guva A. Sahn
November 18, 2004
Who
authorized the sale of the iron ore in Buchanan? Who’s benefiting
from the proceeds of the sale? Of the total sale, how much went to
the citizens of Nimba and Grand Bassa counties? Were the former
employees paid? Will the local people in mineral rich counties in
Liberia EVER benefit directly from their natural
resources?
While the interim government in Monrovia struggles to identify
who authorized the sale of iron ore in Buchanan and who is
benefiting, constant reports of backdoor deals being made with
foreign companies provide strong reasons for Liberians, especially
Nimba citizens to worry. Their worries stem from Liberia’s
checkered past where leaders took bribes and made concession
agreements without considering the interest of the local people. All
of these and other related ills led to the civil crisis in our
country. Interestingly after 14 years of civil war and the death of
over 300,000 citizens, our leaders are still involved in corruption
and cronyism. Considering that the citizens of the country and more
specifically those of mineral rich counties did not benefit from the
wealth drawn from their native soil, the time has come for
policymakers to halt the exploitation of Liberians and reverse the
trend. Citizens of mineral rich counties deserve to get benefits
from their natural resources. The logic here should not be too hard
to grasp except if those who think differently have ulterior motives
– reverting to inequalities and injustices that plunged Liberia
into the throes of hatred and war.
The first step in assuring that the interests of mineral rich
counties are protected, I suggest the following:
Three representatives, each from mineral
rich counties should be on the Legislative and Senatorial Committees
and/or sub-committees(Mineral Technical Committee) responsible for
overseeing mineral exploration. These representatives should have
the mandate to critically examine past processes of mineral
exploration in the country and develop new standards to govern
future mining activities.
These committees should also be
responsible to develop mechanisms for ensuring that funds derived
from local mineral exploration are invested in economic development
within mineral-rich counties. Citizen councils should be established
locally that guide the use of their respective revenues from mineral
exploration.
Local citizens should have a voice in
concession agreements and all such agreements should make
allocations for environment clean-ups.
It is clear that concession agreements in the past were mired by
the greed and selfishness of Liberian leaders (local and national)
rather than ensuring that such national wealth translate into
improved quality of life for Liberians. Instead, corruption and
cronyism became the norm and thus the citizenry were disadvantaged
by such lopsided processes.
For example, the landslide in Bomi Hills in the early 80’s
could have been prevented had there been systems in place to
proactively address against potential land or mudslides. Either
through greed or ignorance, Liberians were left vulnerable to these
catastrophes or even when they occurred, the chance of redress
ranged from minimal to nonexistent. Many people were killed and
properties destroyed. The company has long been gone and those who
possibly received kickbacks for protecting the company from
liability may also be dead. One wonders, if the people of Bomi Hills
really got anything substantial for their iron ore. Bomi citizens
got BOMI HOLES just as Nimba citizens got bottomless
valleys, polluted rivers and creeks and abandoned heavy equipment. This
article endeavors to highlight these obvious wrongs and to spur
debate and dialogue about future concession agreements and mining in
our beloved country.
Given that we watched powerlessly as the past governments forged
contracts that devastated forests in the past, we must respond
differently in the post-conflict era. We must advocate for public
policies, which demand that if a tree is cut from any forest in
Nimba, at least 25% of the proceeds must remain in Nimba and four
new trees must be planted in its place. Bridges built by these
logging companies must be built with concrete, not logs that rot in
less than five years. Roads constructed must be maintained by such
companies for a number of years until the government takes over
them. All Liberians working for such companies must receive wages
that are commensurate with their qualifications and fair market
standards.
All counties of our country are rich, not necessarily in gold,
diamond or iron ore. Timbers are found in Grand Gedeh, Sinoe, and
Maryland. Even arable land is considered a natural treasure and must
not continue to be explored at the expense of the local people. Any
investment decisions made for mining or logging must therefore
strongly consider the interest of the local people who have for
generations provided security for these riches.
History:
Buchanan Ore cleaning plant below
The
Liberian American Swedish Company, LAMCO, signed a 70-year
concession Agreement in 1953 for ore exploration in Yekepa, Nimba
County. In 1956, exploration started leading to the discovery of ore
reserve of over 250 million tons high-grade iron ore in the Nimba
Range. To fund the project, financiers were sought. Bethlehem Steel
acquired 20% of the project and was guaranteed 25% of the financing
and 25% of the sales. The remaining 75% was shared equally with the
Government of Liberia and LAMCO.
Of the 75% shared between Liberia and LAMCO, nothing was
set-aside for the people of Nimba, let alone for cleaning the
environment. The Yeke family of Nimba County doesn’t have
anything to show for the billions of dollars invested in their land.
The scholarship program set up to educate Liberians didn’t
directly benefit them, let alone local Nimba citizens. The only
major hospital in Sanniquellie, Nimba’s capital, was built near a
railroad track. I spent a night at this hospital and got my share of
the noise by the locomotives from Yekepa to Buchanan. LAMCO should
have rebuilt the hospital at a different location. A company the
size of LAMCO would have spent less than $5m to relocate the
hospital.
The hospital problem in Sanniquellie was just a tip of the
iceberg. Most of the workers in LAMCO were not even Liberians, let
alone local Nimba citizens. Liberians that worked the mines were not
paid fair wages. The rivers in Nimba, Mano, Yar, Borh and others
were polluted. Considering the fact that our people still drink from
streams that these rivers flow directly into, many local people have
died and continue to die from gastro-intestinal diseases.
Not even all of the major towns and villages in Nimba County have
access to peacekeepers in recent times. Former rebels are still
harassing people in some towns and villages in the county. With the
county not declared safe of rebels, signing concession agreements
makes one wonder whether the diamonds and ore count more than the
people of the county. All of these important issues must be resolved
before anyone can even phantom reviving LAMCO. Liberians, not only
Nimba citizens, are committed to directly engaging the government on
these issues of their national interest and survival.
THE WAY FORWARD IN NEW LIBERIA
Firestone Plantations Company, B. F. Goodridge, Nimbaco, Lofa
Construction Company, Cesto Nimba Corporation, etc. operated in some
parts of Liberia and some are still around today. Whatever these
companies got away with in the past, is history, but the popular
demand of this century is a call for FRESH START with
the counties having a considerable share of their resources. This
call is just and popular and must not be overlooked.
The final call is clear and simple from the NIMBA
perspective. Our County is one of the richest in the country. It has
nothing to show for over 250 million tons of high-grade iron
exploited there for over 30 years. We are left with environmental
problems and diseases that we were unprepared to deal with. By
guaranteeing a fair share of our resources-considering the popular
demand of the 21st century, Liberia will be laying not only a solid
economic foundation for its own people but encouraging lasting peace
and stability in our country.
Finally, hats off to the various Liberian organizations that are
engaging our government for fair play like the Liberia Democracy
Watch, Foundation for International Dignity, National Human Rights
Center of Liberia, Association of Environmental Lawyers of Liberia
(Green Advocates), Foundation for Human Rights and Democracy, the
Nimba and Bassa University Student Associations and Center for
Democratic Empowerment. In a democracy, we all serve as watchdogs of
the society. To succeed in a country like ours, with its legendary
tradition of corruption and cronyism, we must continue working hard.
About the Author:
________________________
Yini Guva A. Sahn is a Liberian. He holds
an MBA from Ashland University in Ohio. He heads the Nimba
Development Institute.
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