The Liberian Senate has passed an amendment to the Mineral Development Agreement (MDA) between the Government of Liberia and the Bea Mountain Mining Corporation (BMC).
The decision, made on Wednesday, August 30, 2023, followed recommendations from the Senate Joint Committee, which conducted a public hearing with sectorial agencies.
Under the amended 25-year agreement, BMC will invest an additional US$520 million.
According to the Senate Press and Public Release, the Committee’s findings highlighted several benefits of the amendment.
These include an accumulative Community Development Fund (CDF), Clan Development Fund, 50 percent surface rental fees, five percent ownership of equity, and increased financial benefits for affected communities.
Notably, the Committee emphasized that the amendment would result in substantial financial dividends for the country compared to the Restated and Amended MDA of 2013, due to the inclusion of various taxes and levies.
It also pointed out the increase in employment opportunities for Liberians, from 3,500 in the previous agreement to 4,000 in the amended version.
As part of the amendment, BMC’s operations area will expand from 485 sq/km to 537 sq/km, leading to an increase in surface rental fees.
In conclusion, the Senate Committee on Mines, Energy, Natural Resources, and Environment recommended the ratification of the First Amendment to the Restated MDA.
They further resolved that BMC would contribute $100,000 each to the Mana, Darblo, Seimavula, and Menmassa clans for clan development purposes, subject to a Memorandum of Understanding being signed within six months after ratification.
Following the Senate’s ratification, Plenary instructed the Secretary of the Liberian Senate to forward the instrument to the House of Representatives for concurrence.
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