MONROVIA, Montserrado – The Director General of the Bureau of Concessions, Ciata Bishop, says the bureau has identified strings of problems in Liberia’s agriculture and mining sectors.
Steel giant ArcelorMittal recently announced job losses for over 160 workers in its employ, citing the fall in the price of iron ore on the global market.
China Union, which operates in Bong Mines, has also scaled down its operations with a series of job losses.
At a recently held Ministry of Information news conference, Bishop acknowledged that the drop in the prices of the commodities was making it difficult for the government to execute some of its concession agreements.
“Liberia is at a major crossroad in its economy,†Bishop noted.
Bishop, however, disclosed that after several months of consultations, the government has agreed that certain things be done to keep the mining sector operational but at a lower cost.
Bishop also revealed that the government was experiencing difficulties in securing lands for companies involved with agriculture concessions.
She attributed some of the problems to residents illegally migrating into concession areas.
In another development, she said the government had attracted approximately US$15 billion from foreign direct investments related to concessions. She clarified that these investments were not physical cash given to the government and would be used to build infrastructures.
In ArcelorMittal’s last annual report for 2014, the company said its business was substantially affected by regional and global macroeconomic conditions.
“Recessions or prolonged periods of weak growth in the global economy or the economies of ArcelorMittal’s key selling markets have in the past had and in the future would be likely to have a material adverse effect on the mining and steel industries and on the company’s business, results of operations and financial condition,†the report read. The company’s next report is due in March.
The Indian steel company’s recent decision to lay off 167 Liberians comes after a long spell of negotiations with the Liberian government.
Featured photo by Zeze Ballah
