AMR Signs Severstal Deal to Develop Putu After Years of Delays

AMR Signs Severstal Deal to Develop Putu After Years of Delays

MONROVIA, Liberia: Africa Metallic Resources Inc. (AMR) says it has signed a share purchase agreement with Russian steelmaker Severstal and received government approval to take control of the Putu Iron Ore Project, moving the long-delayed Grand Gedeh investment closer to development.

In a statement dated November 9, AMR said it had also signed a binding Memorandum of Agreement with the Government of Liberia. The Liberian-owned company described the agreements as progress toward developing the project.

However, the statement did not announce the completion of the ownership transfer, disclose the purchase price or give a date for construction or commercial production.

AMR said it was continuing work with Severstal, the government and its partners to advance the transaction and prepare the project for development.

The company named Africa Finance Corporation (AFC) as its financial partner, responsible for helping arrange and raise the money needed to develop Putu. It said technical partners and financial advisers were also working on engineering, planning and infrastructure preparations.

No financing amount or date for the release of funds was provided.

AMR also reported progress through United States regulatory procedures, including engagement with the Treasury Department’s Office of Foreign Assets Control (OFAC) over sanctions requirements and approvals. Its statement did not specify the scope or conditions of those approvals.

The company said the project could create jobs, provide business opportunities for Liberian suppliers and support infrastructure development. It did not provide employment figures or a timetable for delivering those benefits.

A project waiting more than a decade

Located in Grand Gedeh County in southeastern Liberia, Putu has remained undeveloped despite years of exploration, ownership arrangements and government efforts to attract investment.

The government ratified a 25-year Mineral Development Agreement for the project in September 2010. Severstal subsequently acquired its partner Afferro Mining’s remaining 38.5 percent interest, taking full ownership in 2012. (aist.org)

An independent assessment announced by Severstal in October 2012 estimated Putu’s iron ore resources at 4.4 billion tonnes, averaging 34 percent iron. That historical resource estimate describes the deposit’s assessed size, rather than the quantity already proven commercially recoverable. (oreanda-news.com)

Liberia granted the project a Class A mining licence in 2014 after approval of its feasibility study. At the time, preliminary development costs were estimated at between US$3 billion and US$4 billion, and Severstal was seeking a partner to help finance the investment. Those figures were historical estimates, rather than a budget for AMR’s proposed development.

Work at Putu stopped in 2016 amid financial and operational difficulties. In February 2025, then Mines and Energy Minister Wilmot Paye told lawmakers that the government and the company had entered mediation over the project’s future.

Infrastructure has been a major obstacle. Putu lacks direct access to the existing railway and port system used by ArcelorMittal’s northern Liberia operations, making transport and export facilities a substantial part of its development needs.

Competing bids and community demands

Efforts to transfer the project also faced competing investor proposals. FrontPageAfrica reported in September that AMR had been selected as the preferred developer following a government evaluation in December 2025. The newspaper later reported that Severstal had informed the government that AMR’s binding offer was better than a competing proposal from Planet One in both price and terms. (frontpageafricaonline.com)

The presidency had already moved to address the delays. In March 2026, President Joseph Nyuma Boakai directed Vice President Jeremiah Kpan Koung to coordinate an inter-agency process to resolve outstanding legal, financial and administrative requirements surrounding the transfer. (micat.gov.lr)

Communities around Putu have also sought a greater say in the project. In September, the Putu Contact Group welcomed efforts to revive it while proposing commitments on community participation, local procurement and development benefits. (frontpageafricaonline.com,

AMR’s announcement reports progress on the agreements needed to move Putu forward. What remains unclear from the statement is when the transaction will close, how much financing will be secured and when residents can expect construction, employment and mining to begin.