Overview

Liberia has rich mineral deposits, including iron ore, gold, and diamonds. Historically, mineral extraction has been a leading export and a key contributor to the gross domestic product. Minerals are generally exported in raw or semi-finished forms. Iron ore and gold are mined on an industrial scale while diamond deposits, which are widespread throughout the country, are primarily exploited via alluvial and artisanal mining. The government issues Kimberly Process (KP) Origin Certificates that enable the legal export of rough diamonds to other KP member countries. Despite the decline in global iron ore prices, iron ore mining plays a significant role in the economy, accounting for 27 percent of total export earnings in 2022. ArcelorMittal, which has had a mineral development agreement with the government since 2005, has invested heavily in the sector and has iron ore and metallurgical coal reserves in the Mount Nimba range. ArcelorMittal also restored and operates a 243-kilometer rail line connecting its Tokadeh mine in northern Liberia to the Port of Buchanan, as well as roads, electrical plants, housing facilities for workers, and other critical physical infrastructure. ArcelorMittal produces and exports iron ore to customers in Europe and Asia and is pursuing the expansion of its operations in Liberia.

Artisanal and small-scale mining (ASM), predominantly of gold and diamonds, takes place in many parts of Liberia. The sector is poorly regulated and dominated by unlicensed and illegal miners. A minority of artisanal miners hold small-scale mining licenses. In the mining sector, safety, land disputes, pollution, and overlapping mining claims are critical concerns. Some of the most lucrative mines are in remote and inaccessible forest regions, and the government lacks the resources or capacity to monitor mining activities or enforce mining laws and regulations.

In 2016, the Ministry of Mines and Energy developed a roadmap to regulate artisanal and small-scale miners to encourage them to organize into cooperatives, which could improve working conditions and attract foreign investment. The ministry commenced implementation of the roadmap in October 2020 and continues to implement it in major alluvial mining regions of the country. It has rolled out training programs for mining agents and mineral inspectors and is collaborating with the National Identification Registry (NIR) to issue ASM ID cards to miners across the country. The effort involves local authorities, law enforcement, communities, mining cooperatives, and individual miners, but has been slow to roll out. Since 2013, some publicly traded companies such as Hummingbird Resources and Avesoro Resources (formerly Aureus Mining), have invested heavily in exploration and feasibility assessments in the sector. Bea Mountain Mining Company, a subsidiary of Avesoro Resources, continues to develop Liberia’s first and largest commercial gold mine, the New Liberty Gold Mine, in western Liberia. The Central Bank of Liberia reported a 49 percent increase in the production of gold and a 12 percent decrease of in diamond production in 2022.

Source: Central Bank of Liberia (CBL), 2022 Annual Report

+ Revised/Actual

** Projection

Source: Central Bank of Liberia (CBL), 2022 Annual Report

+ Revised/Actual

** Projection

Source: Central Bank of Liberia (CBL), 2022 Annual Report

+ Revised/Actual

** Projection

Leading Sub-Sectors

Supply and repair of mining equipment; mining construction; and mining consultation services.

Opportunities

Areas of opportunity for U.S. companies include technical, geological, and engineering services, and specialized mining machines and equipment. Ongoing reconnaissance and exploration activities could create downstream economic activities in communities near exploration sites.

Resources

· Ministry of Mines and Energy

· Public Procurement and Concessions Commission (PPCC)

· Liberia Chamber of Commerce (LCC)