US Ivanhoe Atlantic Mining Ventures Liberia
Pakistan’s Reko Diq Copper Gold Project
Credit;Africa Business Insider
Pursuant to the ratification of Ivanhoe Atlantic rail and port access agreement (Concession and Access Agreement) by the Liberian legislature the US miner has been permitted to transport iron ore from its Kon Kweni project in Guinea to the Liberian port of Buchanan.The legislation followed 6 years of negotiations between US based Ivanhoe Atlantic and the Liberian government. The company successfully pitched its so-called “Liberty Corridor” between Guinea and Liberia as a counterweight to China’s so called “ predatory” dominance over critical minerals in Guinea’s Simandou region. Africa’s vast mineral wealth is at the centre stage of international power competition, as a newly developed high-grade iron ore deposit in Guinea draws the United States into a strategic confrontation with China over supply chains, infrastructure routes and geo strategic influence.
Credit;Ivanhoe Atlantic
The US mining giant is scheduled to commence constructing Kon Kweni in early 2026 and begin shipments the following year, initially aiming for annual output of up to 5 million tons of high-grade iron ore. Liberia executed a US $ 1.8 billion agreement with US-based Ivanhoe Atlantic Inc. to rehabilitate and utilize its railway infrastructure for exporting iron ore from Guinea’s Kon Kweni project. Access to the rail will provide Ivanhoe Atlantic with the shortest export route for its Guinea mining project. The project targets initial production of 2-5 million tons annually , reaching up to 30 million tons.
Rival Project Simandou Ships Ore to China
Credit;Business Insider Africa
Guinea has commenced transportation by sea of cargoes of iron ore from a rival Simandou project, shipping about 200,000 tonnes of high-grade ore to China. Roughly 160 kilometres from Simandou a new iron ore deposit known as Kon Kweni has been identified in the mountains of Guinea operated by US Ivanhoe Atlantic. Bronwyn Barnes , President & Chief Executive Officer of Ivanhoe Atlantic , shared that every tonne produced is reserved exclusively for US and allied supply chains and none will go to China.
Liberian Rail Policy & Mining
The Liberian rail policy emphasises on retaining logistical and financial sovereignty while simultaneously allowing transition of the existing Liberian rail infrastructure to a multi-user, independently operated grid opening up a valuable logistics chain to other users in Liberia and neighbouring countries, including US aligned companies seeking expansion into the region. The proposed transition will expand the Guinea-Liberia corridor to multiple users with an independent operator after ArcelorMittal Liberia’s exclusive agreement expires in 2030. The ratified Concession and Access Agreement provides access for Ivanhoe Atlantic Inc. to transport its ultra-high grade iron ore (> 67 % Fe) from its Kon Kweni project in Guinea, part owned by the Government of Guinea, to the Liberian Port of Buchanan using the Liberian Government owned Yekepa-Buchanan Rail Line.The required environmental impact assessments in Guinea and Liberia and are undergoing regulatory review. The 245 km Yekepa–Buchanan railway is a vital artery connecting Liberia’s mineral-rich east to the Atlantic Coast. Liberia is poised to avail its strategic advantage by positioning itself as a key trading hub in West Africa.
Credit; mg_2765-vagones-de-carga-de-carbon-de-feve-en-la-estacion-de-figaredo-mieres-asturias-2016-e-u.jpg
Phased Investment by US in Port and Rail Infrastructure
Phase 1 of the project entails an estimated US $ 64 million investment for the rehabilitation and operational readiness of the existing railway and port infrastructure. Concession and other milestone payments after ratification will total US $ 35 million. Additionally, Ivanhoe Liberia will also contribute millions more in community development to impacted communities in Nimba and other counties. The phase II expansion envisages an additional US $ 888 million in direct capital costs, split between an estimated US $ 452 million railway upgrade and US $ 436 million expansion of Buchanan Port.
Infrastructure Development Investment
The infrastructure development will increase capacity on the railway to support the transportation of 30 million tons per annum (mtpa) of iron-ore from the Kon Kweni Iron Ore Project. The investment will include the construction of 22 km of dedicated haul roads, new bypasses, rail spurs and commercial quay mobilization at Buchanan Port. These commitments approach over a billion dollars in direct investment, likely to create hundreds of local jobs and establish a robust platform for multi-user, multi-commodity growth across Liberia. Ivanhoe Liberia has already made an access deposit of US $ 37 million to the Government of Liberia through the Central Bank between 2019 to 2022.
Credit;The West Australian
Guaranteed Revenue Contribution
In 2022 Ivanhoe was acknowledged by the Liberia Revenue Authority (LRA) as a major revenue spinner. The concession and milestone payments as contained in Ivanhoe Agreement include :
US $ 1 million within 10 business days after signing of CAA
US $ 10 million within 10 business days after CAA takes effect
US $ 15 million upon unimpeded physical access to rail & port infrastructure
US $ 2.33 million on the date National Rail Authority Act enacted
US $ 3.33 million on date Independent Operator appointed
US $ 3.33 million on first anniversary of appointment of Independent Operator
Credit ; Liberian Observer
According to the Concession Agreement these concession payments will be supplemented by dividends, taxes and duties that Ivanhoe Liberia will also pay throughout its use of the railway and port, excluding infrastructure investments. The project is part owned by the Government of Guinea and is expected to generate USD $ 16.7 billion for the Guinean government in its lifecycle in royalties, taxes and development fund contributions as well.
Barrack Investment in Pakistan Unknown ?
Credit;Dawn
The extent of investment in Pakistan’s Reko Diq Copper Gold project , situated at Chagai Balochistan by Barrick , is not available in the public domain. Hence the real contribution of Barrick to Pakistan’s mineral, financial, taxation and logistic sector is not clear apart from what Barrick chooses to share.
Credit;Barick Mining Corporation
Barick’s President and CEO Mark Bristow has shared that a financing pact with the World Bank and its commercial arm International Finance Corporation (IFC) was expected to be signed . The Asian Development Bank has , as per media reports , announced to invest in the project which is raising eyebrows as the President of ADB is from Japan and a likely conflict of interest may arise as Japanese companies have traditionally held significant stakes in copper mining and production. Barrick’s board had raised the possibility of splitting the company’s assets, which could include an outright sale of the Reko Diq mine and the company’s African assets . Although Barrick’s Anti-Bribery and Anti-Corruption statements are available on its website the manner ,duration, mechanism, third party involvement, international due diligence studies and mode of negotiations prior to acquiring the Reko Diq project are not available in the public domain.
By Nadir Mumtaz
Credit :
http://Ivanhoe Atlantic media release
https://africa.businessinsider.com/local/markets/us-miners-develop-dollar18bn-high-grade-iron-ore-project-to-rival-chinas-dollar24bn/btsjlln
https://www.dawn.com/news/1903043
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