Senator Snowe Picks Fight with Western Cluster

Tubmanburg, Bomi County: Bomi County Senator Edwin Snowe has called on the Liberian government to hold Western Cluster Limited accountable for its alleged failure to comply with the Memorandum of Understanding (MOU) signed with the government in April 2022. 

Senator Snowe expressed his frustration and disappointment, stating that the company has not fulfilled its obligations under the agreement.

He emphasized that a key provision of the MOU required the company to transition the agreement into a full concession by ratifying the Mineral Development Agreement (MDA).

However, he noted that Western Cluster has made no efforts to honor this commitment, leaving significant issues unresolved.

The senator pointed out the lack of progress since the signing of the MOU, citing the poor condition of roads and bridges in the areas where the company operates as clear evidence of its failure to meet its responsibilities.

Snowe urged the government to take immediate action against Western Cluster, describing its actions as a blatant disregard for the agreement.

He argued that such behavior undermines trust in the country’s investment agreements and advocated for stricter enforcement of accountability measures.

This situation has resulted in growing dissatisfaction among citizens in affected areas, who report poor infrastructure and a lack of tangible benefits from the company’s activities.

Senator Snowe reiterated his commitment to advocating for the people of Bomi County and ensuring that companies operating in Liberia uphold their obligations.

Senator Edwin Melvin Snowe

The Western Cluster deal continues to face a series of setbacks due to the Government of Liberia (GOL) and the Legislative Caucuses in the operational areas failing to involve their citizens in the renegotiation processes. 

This led to the signing of a controversial Memorandum of Understanding (MOU) for the resumption of the company’s operations. On Wednesday, June 8, 2022, Western Cluster broke ground to recommence operations in Bomi, shortly after the government signed the MOU with the company.

This MOU was signed after the company struggled to implement the Mineral Development Agreement (MDA) it entered into with the government in 2011. The struggles were attributed to the outbreak of the Ebola virus and a decline in iron ore prices on the world market.

The MOU grants the company the right to operate at three iron ore deposits, including the Bomi Hills Mines in Bomi, Grand Cape Mount, and Gbarpolu Counties.

However, following the signing of the MOU and the startup of operations, residents—especially those from Bomi County—raised several concerns.

These concerns included the unilateral decision made by their caucus to renegotiate the deal without community input, issues regarding road construction, and disagreements over the trucking of iron ore.

In response, the citizens held a mass meeting with their lawmakers in Tubmanburg among other they demanded that the resolution calls for the cancellation of the MOU with the company.

As part of the MOU, Western Cluster which owes the government US$23 million has been mandated to pay US$10 million The company initially paid US$5 million for a Class A mining license issued by the government through the Ministry of Mines and Energy after signing the MOU.

The remaining US$5 million was due to be paid within 45 days of the first shipment of iron ore by the company. Additionally, Western Cluster is required to contribute US$3 million for the rehabilitation of the corridor between the St. Paul Bridge and the Freeport of Monrovia.

This amount will be payable in two equal installments. The company is also tasked with leasing the LMC and NIOC piers at the Freeport of Monrovia.

The MDA signed between the Government of Liberia and Western Cluster in 2011 stipulates that the company must provide US$2 million as benefits to the affected communities.

Furthermore, the company is obligated to contribute US$200,000 annually for education in Bomi, Grand Cape Mount, and Gbarpolu Counties. Western Cluster is also mandated to provide housing facilities, job training opportunities (both locally and internationally), and healthcare services for employees within its concession areas.

According to the MDA, the company must also offer educational opportunities for employees’ children aged 5 to 21 by constructing a general school for them. Additionally, it is required to truck iron ore from Bomi to the Freeport of Monrovia while ensuring all necessary security and environmental measures are in place for a three-year period following the completion of its railway construction.