“Liberian gov’t to Reclaim Control of $12B Putu Mountain”

The government of Liberia has announced that it is starting the process of ending the Mineral Development Agreement (MDA) with Severstal, a Russian-affiliated company. This agreement was made to give Severstal control over Putu Mountain in Grand Gedeh, which is worth around $12 billion. The goal is to take back ownership of the mountain.

Putu Mountain is known for having a huge amount of iron ore. The Putu mine there is one of the biggest iron ore reserves in the world, with about 4.5 billion tons of ore. The iron ore has a 34.1% iron metal grade.

The news about reclaiming Putu Mountain was shared by three government officials: Deputy Minister of Justice for Economic Affairs, Cllr. Charles Karmo; Chairman of the National Investment Commission (NIC), Mr. Jeff Blibo; and Minister of Lands, Mines, and Energy, Mr. Wilmot Paye. They made the announcement earlier this week during a meeting of the House of Representatives, after responding to a question from Representative Jeremiah Sokan of Grand Gedeh’s District #1. Sokan had asked about the current situation with the iron ore.

In response, the House voted for the three officials to give an update to the Committee on Investment. This update will provide more details about the ongoing process to take back control of the mountain from the Russian company, and the Committee will report back to the entire House later.

Putu Mountain is located in the southeastern part of Liberia, in Grand Gedeh County. It is known for having one of the largest iron ore reserves in the world. The mountain has been a significant resource for Liberia’s mining industry for many years, with its iron ore deposits being of great interest to various mining companies globally.

The history of the Putu Mountain mining project dates back to the early 2000s. In 2008, the government of Liberia signed a Mineral Development Agreement (MDA) with a company called Severstal, which is a Russian-affiliated steel and mining company. This agreement allowed Severstal to explore and develop the iron ore resources at Putu Mountain.

Severstal began exploration and development work in the area, with the aim of establishing a large-scale iron ore mine. However, the project faced several challenges, including financial difficulties, delays in development, and the global fluctuation in iron ore prices. Despite these challenges, the Putu Mountain area was still seen as a highly valuable resource due to its vast deposits of iron ore, which are estimated at around 4.5 billion tons, with a grade of 34.1% iron content.

Over time, the Liberian government and local communities expressed concerns over the progress of the project. There were complaints about the lack of development, job creation, and infrastructure improvements in the region. As a result, the Liberian government began to reconsider its relationship with Severstal and the terms of the MDA.

In 2025, the government of Liberia announced its decision to terminate the MDA with Severstal and reclaim control of the Putu Mountain. This decision was made in the hope of ensuring that the resources of Putu Mountain would be more effectively managed for the benefit of Liberia and its people. The government aims to take back ownership of the mountain and possibly open it up to other investors or companies that can more effectively develop its resources.

The history of Putu Mountain reflects the challenges and opportunities that come with managing natural resources in Liberia, a country rich in minerals but facing issues of infrastructure, governance, and sustainable development. The future of Putu Mountain remains a key topic for both the government and local communities.