Liberia has rich mineral deposits. Historically, mineral extraction, particularly iron ore, gold, and diamonds, has been a leading export sector. The major minerals are exported mainly in raw or semi-finished forms. In addition to large iron ore deposits, there are substantial diamond and gold deposits and indications of manganese, bauxite, uranium, zinc, and lead deposits. Diamond deposits, primarily exploited via alluvial and non-mechanized diamond mining, are predominant throughout the country.
The Government issues Kimberly Process (KP) Origin Certificates, which enable the legal export of rough diamonds to other KP member countries. With the gradual recovery in global iron ore prices, iron ore mining plays a significant role in the economy, accounting for 42 percent of total export earnings in 2019. ArcelorMittal, which has invested heavily in the sector, has iron ore and metallurgical coal reserves in the Mount Nimba range. The only large-scale international company currently engaged in iron ore mining operations, its multi-billion-dollar mineral investments include 243 kilometers of the rail line connecting its Tokadeh mine in northern Liberia to the Port of Buchanan, roads, electrical plants, and housing facilities for workers, and other critical physical infrastructure. The company is revisiting plans to expand its Tokadeh mine. ArcelorMittal is currently producing and exporting iron ore to customers in Europe and Asia.
Artisanal mining, traditionally carried out primarily by unlicensed and illegal miners, contributes to the country’s economy through royalties and taxes paid by licensed dealers. There are different mining activities in the Liberian mining sector, including artisanal/small-scale miners (ASM), medium-sized domestic enterprises, large-scale mining, and exploration companies. Currently, there are 1293 mining operations in the country, of which 1142 (88.3%) are ASM, 65 (5%) are medium size, 78 (6%) are exploration companies, and 8 (0.6%) are large-scale enterprises. Among the large-scale companies, the primary producers are Arcelor Mittal (iron ore), China Union Investment (iron ore), MNG Gold Inc. (gold), and Aureus Mining Inc. (gold). The ASM is also involved in the extraction of gold and diamond. However, the development of these ASM operations is limited because of a lack of resources and infrastructure.
Laws and Regulations
Exploration Rights
2.1. Grant of Exploration Rights
A License grants to the Licensee for the License Term the exclusive (except as provided in Section 2.4) right to Explore in the License Area on the terms and conditions set forth in this regulation for such Minerals as may be specified in the License. The right to Explore does not include the right to engage in bulk sampling or pilot mining and recovery except in compliance with Section 13.2, or to conduct exploration in any portion of the License Area after that portion has been surrendered or deemed surrendered pursuant to the relevant provisions of this regulation or after the License Term has expired or otherwise been terminated as provided in this regulation.
2.2. Limitations on the Right of a Licensee to Conduct Exploration
(a) A licensee may not conduct exploration for minerals outside of its License Area.
(b) A Licensee may not begin Exploration (except for preparatory Work that does not involve the actual physical obtaining of geological data, such as importation of equipment, the establishment of a local office, remote sensing data interpretation, or the conduct of aerial surveys or ground surveys using existing access roads in each case for such activities as planning exploration access roads, camp locations, or survey patterns) unless the activities involved are provided for in a work program and budget approved or deemed approved by the Minister under Section 4 and the Licensee has provided any security for environmental remediation or restoration required by Section 10.3.
2.3. Impact on a Licensee’s Environmental Management Program of EPA Requirements
(a) Subject to the remainder of this Section 2.3, any documentation concerning a Licensee’s work program or its environmental management proposals submitted by a licensee to the EPA under the EPA Act must be consistent with the Licensee’s Environmental Management Program, including its closure management component, as then proposed to or approved by the Minister.
(b) Licensees should anticipate that if the EPA requires a Licensee to submit an
“environmental mitigation plan” or similar plan under the EPA Act, the EPA may require more detail and impose more specific, measurable performance requirements than will an Environmental Management Program contained in a work program that has been approved by the Minister.
(c) If a licensee is required by the EPA to adopt an “environmental mitigation plan” or similar plan under the EPA Act that is inconsistent with the Environmental Management Program component of the licensee’s work program as approved by the Minister, the Licensee must promptly submit to the Minister a revised Environmental Management Program that conforms to the requirements of the EPA-approved “environmental mitigation plan.” The Minister must approve such a plan if it accurately reflects the requirements of the EPA.
(d) An EPA-approved “environmental mitigation plan” or similar plan is not inconsistent with a Licensee’s approved Environmental Management Program except to the extent, it imposes requirements that cannot be performed if the licensee performs its approved Environmental Management Program or that if performed, make it impossible for the Licensee to perform its approved Environmental Management Program.
(e) If in the judgment of the Licensee, particular work to be performed under the EPA-approved “environmental management plan” or similar plan would if performed render particular work to be performed under its approved Environmental Management Program redundant or unnecessary but not impossible to be performed, the licensee may apply to the Minister for a determination that the particular work under the approved Environmental Management Programs need not be performed. The Minister may not unreasonably deny such an application.
(f) If responsibility for administering applicable environmental Law as it applies to licensees under the Mining Law is delegated to the Ministry, this regulation is not applicable to the exercise of such responsibility, and the applicability to a licensee of any requirements established by the Ministry in the exercise of such the delegated authority will not be determined under this regulation.
