Liberian President Ellen Johnson Sirleaf has announced that after a year-long tender process the country has granted a 25-year license for the country’s Western Cluster, one of the largest iron ore mining sites in the world to Elenilto, part of the Engelinvest Group, controlled by Israeli businessman Jacob Engel.
The Western Cluster includes a group of three mines, with reserves of over 1.1 billion tons of iron ore. Major companies have mined at two of the sites in the past.
Other applicants included Sociedade de Fomento, Industrial Private Limited from India, and Capital Steel Global Company from China (a part of the Shougang Corporation), which was represented in Liberia by Neil Bush, brother of former US President George Bush.
In return for the license, Elenilto will pay Liberia an advance payment of $25 million with annual payments and a social donation, of $3 million a year upon commencement of production. In addition Elenlito will pay 21% of the projects’ profits after return of investment, with a 22.5% yield for Elenilto.
As part of the development, Elenilto will build a railway line track, improve the port and invest in other infrastructure. With the sites between 65km and 150km from the port this is a significant advantage with regards to transport costs compared with similar mines in West Africa.
The company is in preliminary contacts for the creation of a consortium of several international financial bodies which expressed interest in funding and investing in the project.
Amir Nagammy, CEO of Elenilto's activities in Liberia, who led the tender process, said: "This site, which we selected after meticulous testing, is one of the most attractive mining sites in Africa, both in terms of quality and access.
"It should be stated, that in other similar mines in Liberia which have been geologically researched, it was discovered that the actual reserves are several times greater than the initial estimated quantity, as the China Union Company announced two weeks ago, in regard to a reserve scope three times greater than the planned quantity.
"If, and as we expect, these mines will also be similar in this sense, then Elenilto is expected to hold even greater reserves of between 3 and 4 billion tons, approximately, under the license."
1 comment:
How long have the Bushes been working for the Chinese?Since H.W. was ambassador?
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