Senator Nya Twayen Raises Concerns Over Social Benefits, Fees Structure at Senate Hearing on AML MDA Third Amendment‎

 Senator Nya Twayen has raised strong objections to critical provisions of the proposed Third Amendment to the ArcelorMittal Liberia (AML) Mineral Development Agreement (MDA), warning that the agreement undermines enforceable community benefits, weakens long-term government revenue safeguards, and obscures accountability for environmental and social violations.‎‎

The Senator made the remarks during an ongoing public hearing of the Liberian Senate reviewing the amendment, which has already been ratified by the House of Representatives and now awaits Senate concurrence.‎‎Senator Twayen criticized the amendment for removing binding social development obligations from the main body of the agreement and instead proposing that a Social Obligation and Infrastructure Plan be developed three months after ratification. Under the proposal, failure to produce the plan would result only in fines, even if delayed for up to three years.‎‎“Rather than making social benefits enforceable, the agreement replaces them with penalties for delay,” Twayen said. “For local communities, this weakens protection and leaves their development subject to discretion rather than obligation.”‎‎

One of the Senator’s major concerns was the decision to relegate the Social Infrastructure Plan to an appendix rather than embedding it as a core obligation of the MDA. He questioned why commitments such as road construction, schools, clinics, and hospitals were not explicitly stated in the agreement.‎‎“What is wrong with making social infrastructure and obligations clear and enforceable?” he asked. “Why should these critical commitments to communities be treated as secondary documents?”‎‎Senator Twayen also criticized the agreement’s provision fixing surface rental and leasing fees at a flat US$500,000 annually, arguing that the fee is not indexed to production volume, land area, inflation, or commodity prices.‎‎

He warned that under this structure, ArcelorMittal could significantly expand operations or even deplete the concession within a decade while Liberia continues to receive the same flat fee.‎‎“If all the minerals are extracted within ten years, Liberia would still receive only US$500,000 per year,” he said. “That is not tied to production, volume, or land use. It defies economic logic.”‎‎The Senator further demanded clarity on responsibility for road maintenance, environmental protection, and pollution control, citing longstanding environmental concerns in mining-affected communities.‎‎He also raised legal red flags over the transfer of operational control from ArcelorMittal Switzerland AG to ArcelorMittal USA, questioning whether accrued violations and liabilities under the former entity had been legally transferred.‎‎“

We need to see the documents,” Twayen said. “People cannot walk away from violations by simply introducing a new agreement. If necessary, we will go to court to ensure accountability.”‎‎ Despite the concerns raised, proponents of the Third Amendment argue that the agreement delivers unprecedented financial benefits to Liberia. Central among these is a US$200 million signature bonus, payable within 30 days of the amendment taking effect.‎‎Supporters also point to the increase in the Annual Community Development Fund to US$5 million, up from US$3 million, with funds allocated to Nimba, Bong, and Grand Bassa counties and adjusted annually for inflation.‎‎Additionally, the amendment introduces a US$200,000 annual infrastructure oversight fee to strengthen government monitoring of railroad operations and support the National Rail Authority, alongside a new monthly royalty payment of 4.5 percent based on the FOB Buchanan price, replacing the previous quarterly system.‎‎

The agreement also places strong emphasis on job creation and Liberian participation in management. Under its terms, 50 percent of management positions must be held by Liberians within one year, rising to 75 percent in five years and 90 percent within ten years.‎‎It further mandates that one of the top four senior management positions be held by a Liberian within one year and gives hiring priority to qualified Liberians at all levels. The amendment also commits US$500,000 annually for training and scholarships, including technical education in mining and geology, and establishes a new vocational training center campus in Grand Bassa County.‎‎

Proponents also highlight infrastructure commitments, including repairs to the KM 2.5 Bridge and St. John River Bridge, pavement of the Buchanan concession road, and completion of the Sanniquellie–Yekepa road.‎‎Notably, the amendment converts the railroad into a multi-user rail system, opening access to other mining companies and small-scale miners, a move supporters say could stimulate broader economic activity and trade.m‎‎The House of Representatives ratified the Third Amendment following a review by a joint legislative committee. 

The agreement is projected to unlock approximately US$200 million in new investment and extend ArcelorMittal’s mining operations in Liberia until 2050.‎‎As Senate hearings continue, the debate reflects growing tension between promised economic gains and concerns over enforceable community benefits, environmental safeguards, and long-term national interests.

Author: Uriah Suah