Snowe Puts Bea Mountain On Constructive Warning; Intensifies advocacy against violation of concession agreement
Monrovia, Liberia: Senator Edwin Melvin Snowe of Bomi County has accused Bea Mountain Mining Company of overstepping its primary mandate as stipulated in its concession agreement with the Government of Liberia.
Senator Snowe expressed outrage over the Turkish Company's ownership of petroleum storage facilities, accusing the foreign investment of importing thousands of metric tons of petroleum products and venturing into its transportation and distribution.
He has termed Bea Mountain overstepping of its scope of operation by way of the concession agreement as undermining the Liberianization Policy, which aims to empower local businesses and ensure Liberians participate meaningfully in the local economy.
The Liberianization policy reserves certain businesses for Liberian ownership to promote entrepreneurship, create jobs, and reduce dependency on foreign investors.
"It is deeply concerning to see these companies assuming control over essential service industries, such as the transportation of iron ore and petroleum products, as though no Liberian-owned company is capable of executing these tasks. If left unchecked, this practice will continue to marginalize Liberian entrepreneurs, weaken local enterprise development, and stifle economic growth.".
Senator Snowe has called for immediate action to address the alleged violations of concession agreements that are depriving Liberian-owned businesses of economic opportunities.
In a formal communication to Senate Pro Tempore Nyonblee Karnga-Lawrence, Senator Snowe expressed concern that concession companies, including Bea Mountain, are engaging in activities beyond their primary mandates, which undermines local businesses.
He made particular reference to cases involving Bi-Chico Mining Company and Bea Mountain Mining Company, accusing both companies of expanding their operations into sectors that should be reserved solely for Liberian-owned enterprises.
In addition to its core mining operations, Bea Mountain Company is reportedly engaged in the trucking of iron ore, an industry that could be effectively handled by Liberian-owned trucking companies.
This practice, Senator Snowe argues, is denying local businesses the much-needed opportunities that would foster middle-class growth and create jobs for Liberians.
He urged the Plenary of the Liberian Senate to immediately intervene and ensure that all concession agreements are implemented in a manner that prioritizes the inclusion and empowerment of Liberian-owned businesses.
The lawmaker emphasized that enforcing the terms of these agreements is crucial for promoting sustainable economic development, fostering job creation, and preventing the sidelining of Liberian entrepreneurs in their own economies.
It can be recalled that the Liberian Senate voted in favor of the amended mineral development agreement, giving Bea Mountain an additional 25 years of operations in Liberia.
The Liberian Senate took the decision during a special session held on Wednesday, August 30, 2023.
The vote on the amendment saw 15 Senators in favor and 5 against, with no abstentions. The amended concession agreement between Bea Mountain Mining Corporation and the Government of Liberia grants the company an additional 25 years of operation.
The Senate’s Plenary passed into law the First Amendment to the Restated and Amended Agreement of BMMC. This move came following a recommendation by the Senate Joint Committee, led by the Committee on Mines, Energy, Natural Resources, and Environment, after a public hearing involving sectoral agencies.
Under the new 25-year agreement, BMMC is expected to make an additional investment of US$520 million.
The Committee’s findings indicate that the First Amendment to the Restated Mineral Development Agreement includes an accumulative basic Community Development Fund (CDF), Clan Development Fund, 50 percent surface rental fees, five percent ownership of equity, as well as increased financial benefits to the affected communities.
Additionally, the Committee stated that considering all the taxes and levies outlined in the First Amendment to the Restated Agreement, it is clear that the country will accrue substantial financial benefits compared to the Restated and Amended MDA of 2013.
The Joint Committee also noted that the employment of Liberians will see a significant increase, rising from the current 3,500 in the Restated and Amended MDA to 4,000 in the First Amendment to the Restated MDA.
The Joint Committee further mentioned that the company, as part of the First Amendment, will expand its operational area from 485 sq/km to 537 sq/km, leading to an increase in surface rental fees.
The Senate Committee on Mines, Energy, Natural Resources, and Environment endorsed the passage and ratification of the First Amendment to the Restated MDA.
The Joint Committee made a resolution that the company should contribute an additional one hundred thousand United States dollars to each of the four clans, namely Mana, Darblo, Seimavula, and Menmassa clans, for clan development purposes through a memorandum of understanding (MOU) within six months after ratification.
Following the Senate’s ratification, Plenary directed the Secretary of the Liberian Senate to forward the instrument to the House of Representatives for concurrence.
Edited: E. Geedahgar Garsuah, Sr.
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