The fight over Liberian railway infrastructure was strengthened as Liberia (AML) officially warned the Liberian government (GOL) of potential legal action if it proceeded with a proposed contract to grant multi-user railway access to Ivan Ho Atlantic (formerly HPX). In a leaked email addressed to the Liberian Supervisors’ Council Committee (IMCC), AML CEO Miciel van der Merwe alleged that the government’s plan to allow other companies to access the Yekepa-Buchanan railway is directly violating AML’s existing Mineral Development Agreement (MDA).
The development moved towards the implementation of Executive Order 136, which would establish a framework for an independent railway operator structure, effectively ending AML’s monopoly over the railways once the MDA expires in 2030. Unlocks billions of dollars in infrastructure, the country’s potential revenue.
AML claim: monopoly under threat
In its strongly expressed e-mail, AML argues that government negotiations with Ivanhoe Atlantic are “fundamentally inconsistent” with existing legal rights under the MDA. The company claims that granting the first 5 million tonnes of rail capacity allocated to IVANHOE will undermine the operational capacity of AML and violate existing procedures for determining excess capacity and third-party access. AML further alleges that the proposed transaction allows Ivanhoe to build an additional rail infrastructure of up to 30 MTPA, violating AML’s supposed “first option rights” and expanding capacity.
Additionally, AML has been struggling with the government’s plans to move to independent rail operators before 2030, claiming that this is invalidating contractual rights to operate the railway. The company claims it has invested more than US$3 billion, including US$800 million, into its rail infrastructure, warning that losing exclusive control will put investments at risk, increasing operational risk and unstable long-term planning.
Beyond the railway disputes, AML also opposes the government that grants Ivanhoe access to Buchanan port facilities, citing Articles IX(3)(e) and (f) of the MDA. The company claims this constitutes a direct violation of the agreement, indicating that the government is intentionally supporting its competitors.
Threats of AML legal action
AML emails reveal that if the government proceeds with the Ivanhoe Atlantic deal, it will cause legal consequences. The company warns that Liberia’s actions constitute a “violation of the MDA” and that AML will pursue “all legal remedies available” under Liberian law, the Investment Convention and the international arbitration framework. One GOL insider commenting personally to the Observer said, “We take us to arbitration. We are a national and sovereign state. We can make decisions based on the economic situation, how we utilize infrastructure assets for the improvement of the Liberians. AML has not exported more than 5 MTPA in all years that have managed the corridors, and the rails were reportedly built by Ramco with a maximum of 22 MTPA.
This legal threat is not unprecedented. AML has historically used arbitration and litigation as tools to protect its interests. Given its multinational status and deep financial resources, AML could face a long legal battle. Additionally, AML risks delaying its own expansion plans if it pursues that option.
However, the government remains in its position, with Mines Minister and Energy Wilmott Pay revealing in a recent interview with the Daily Observer that Liberia is determined to implement a multi-user rail system, regardless of AML objections.
Government response
A legal opinion issued in May 2022 by the then-Minister of Justice of Liberia CLLR despite the aggressive pushback of AML. Frank Moo Dean is directly inconsistent with AML’s claims. Cllr, his letter to the AML legal team. Dean dismissed the argument that granting Ivanhoe Rail access constitutes a violation of the MDA, highlighting that the existing Liberian agreement, including the Ivanhoe framework agreement, is in perfect alignment with AML’s contractual obligations.
cllr. Dean pointed out that sections 9.3(e) and 9.3(f) of the MDA explicitly reflect on multi-user access, allowing third parties to use rail and port infrastructure under mutually agreed terms. He also said that AML expressed his willingness in June 2020 to work with HPX (now Ivanhoe Atlantic) on developing expanded railway and port systems, and had officially committed to the multi-user rail model.
The former Justice Minister emphasized that AML rights are not absolute and that the Liberian government has full sovereignty over infrastructure assets. His letter reaffirms that the government is acting within both its legal authority and contractual obligations in negotiating access to third parties.
In fact, in 2022, the National Congress cited this very issue in a letter to then-President George Ware as one of the reasons why it refused to update the AML MDA. They wrote that extensive public consultations and hearings contributed to their decision. AML seems to have learned nothing from the 2022 MDA rejection or the Department of Justice’s legal opinion, and is just following the same old playbook.
Promoting Liberia’s economic sovereignty
The transition to Liberia’s multi-user rail system is not just a matter of AML and Ivanhoe Atlantic, but also a matter of national economic strategy. The Yekepa-Buchanan Railway is a 360-kilometer sovereign property, originally built by Lamco in the 1950s and handed over to Liberia through a build, operation and transfer (BOT) contract. Since AML took control in 2005, other mining companies have not been permitted to use the railway despite billions of tons of undeveloped iron ore deposits sitting idle due to lack of transportation infrastructure.
Independent experts argue that the AML monopoly has curtailed Liberia’s economic potential, restricted competition, and prevented the country from collecting much-needed transportation costs and infrastructure investments. The multi-user rail models they claim are:
By enabling multiple mining companies to operate, it attracts billions of dollars of new investments. It will create thousands of jobs by expanding mining and infrastructure projects. Ivanhoe Atlantic alone is projected to contribute more than $2 billion in rail access fees, taxes and other investments over the next 25 years.
What happens next?
AML has made its position clear, but it appears the government doesn’t want to reverse the course. The Ministerial Concession Committee (IMCC) has already outlined the steps for implementing multi-user rail systems, including:
Final decision on national railway standards and multi-user access agreements Choice of independent railway operators (suggestions have already been submitted by Thelodb and Railroad Development Corporation) Enact permanent National Railways Act before enacting permanent National Railways Act
Get the latest African news
success!
Almost finished…
You need to check your email address.
Follow the instructions in the email you sent to complete the process.
error!
There was a problem processing the submission. Please try again later.
Meanwhile, Ivanhoe Atlantic has reportedly not expressed objection to launch a massive 30 MTPA export in 2030, indicating its commitment to a multi-user migration plan. However, you should start with a small project where you will be dispatched immediately with 5 MTPAs poised to be approved by GOL.
With a higher stake than ever, AML is currently facing important decisions. Risk of losing goodwill with the Liberian government and potential investors, they continue their fight to maintain their monopoly and negotiate in good faith to cooperate with Liberia’s new railway policy. Furthermore, based on comments about radio from social media and the public, the overall sentiment is that a large portion of Liberia supports multi-user rail access and government policies.
Liberia’s attitude towards multi-user rail access represents a critical moment in its economic change. Despite the legal threats of AML, the government’s position is based on both legal precedents and economic necessities, as discussed in a 2022 letter from the Ministry of Justice. Although AML is threatening the government, it is well documented in official government responses that have made it public that AML default on multiple aspects of the MDA, observers are asking whether they will arbitrate the government when they themselves default on their own MDA.
As GOL concludes negotiations with Ivanhoe Atlantic, the direct beneficiary of the Multiuser Rail Policy, to protect decades-old monopoly, it determines whether AML will adapt to a new reality or escalate the legal battle to protect decades-old monopoly.
