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Liberty Corridor Project Sparks US Diplomatic Concerns
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Monrovia, Liberia – A recently signed agreement to develop the Liberty Corridor, a major railway project connecting Guinea and Liberia, has ignited a debate over the role of the US government and potential conflicts of interest. The deal, announced on the eve of a visit by West African leaders to the White house, involves Guma Africa Group and the Government of Liberia, and is valued at approximately $1.8 billion.
What is the Liberty Corridor?
The liberty Corridor is envisioned as a heavy-duty railway linking the Nimba District in Guinea to a new deepwater port in Didia, Liberia. It will be built atop the existing Yekepa-Buchanan Railway Corridor, aiming to boost regional economic integration and facilitate the export of iron ore from Ivanhoe Atlantic‘s Kon Kweni Iron Ore Project (KKIOP).
This project directly challenges the existing monopoly held by ArcelorMittal (AML) over the Yekepa-Buchanan Railway, an agreement established in 2005. AML has invested significantly in upgrading the infrastructure along this corridor, but the Liberty Corridor threatens to diminish the value of their future investments.
Did You Know?
ArcelorMittal has invested a substantial sum of money in expanding operations and upgrading infrastructure along the Yekepa-Buchanan Railway Corridor.
Ivanhoe Atlantic and the KKIOP
The Liberty Corridor is championed by US-based Ivanhoe Atlantic,formerly known as High Power Exploration. in 2019, the company acquired the rights to the Nimba Iron Ore Mine. The KKIOP boasts over 700 million tons of Direct Ship Ore (DSO), with over 200 tons being high-grade ore. The railway is crucial for Ivanhoe Atlantic to efficiently transport this ore to market.
The project’s potential extends beyond Ivanhoe Atlantic, with other important iron ore deposits in the Southern Guinean Highlands, such as the Simandou Iron ore Mine, holding an estimated 1.5 billion tons of ore. However, the Simandou project has faced controversy, including a 2023 settlement by Rio Tinto related to a Foreign Corrupt Practices Act case and concerns over Chinese involvement.
US Government Endorsement and Allegations of Favoritism
The US government has publicly expressed support for the Liberty Corridor, with the US Embassy in Monrovia welcoming the signing of the concession agreement between Ivanhoe Atlantic and the Liberian government. However, this endorsement has sparked concerns about potential favoritism and insufficient due diligence.
Private claims suggest the letter of intent was signed only due to alleged coercive actions by the US government. Specifically, US Ambassador to Liberia mark Toner, Senior Africa Bureau Official Troy Fitrell, and Senior Africa Advisor to the President Massad Boulos are accused of spearheading diplomatic intervention. These actions raise questions about whether US commercial advocacy unfairly favored Ivanhoe Atlantic, particularly given that the company’s chairman, J. Peter Pham,is a former US Special Envoy and a potential candidate for assistant Secretary of State for African Affairs.
Furthermore, concerns have been raised regarding the alignment of the Liberty Corridor with US national security and foreign policy interests
