MONROVIA — FrontPageAfrica has gathered from confidential documents and sources that the Liberian government has been opting through an agreement to allow Pioneer Group LLC (PGL), a company based in Dubai, United Arab Emirates, to take over Putu Iron Ore Mines in Southeastern Liberia.
The Putu Iron Ore Mine in Grand Gedeh County represents one of the largest iron ore reserves in Liberia and in the world, having estimated reserves of 2.37 billion tonnes of ore grading 34.1% iron metal.
The company signed a Mineral Development Agreement during the regime of former Liberian president Ellen Johnson-Sirleaf on September 10, 2010, committing itself to impact its regions
in which minerals are developed, including facilitating growth centers and education for sustainable regional development, to create more employment opportunities, to encourage and develop local business and ensure that skills, know-how and technology are transferred to citizens of Liberia, to acquire basic data regarding and related to the country’s mineral resources and to preserve and rehabilitate the natural environment for further development of Liberia.
Documents in FPA’s possession reveal that the Liberian government attempted entering into an agreement between the Pioneer Group LLC (PGL) to allow PGL to take over the Putu Iron Ore Mines and of its assets worth US$2 billion. But before the acquisition, PGL will pay a non-refundable fee to the government in the amount of US million dollars.
FrontPageAfrica gathered that the agreement was reportedly brokered by the Minister of State without Portfolio, Mrs. Mamaka Bility, and her husband, a successful businessman.
The minister, according to reports, has been maneuvering among relevant cabinet ministers to sign off the deal. However, the agreement, which appears to be laden with shortcomings, met its stiff resistance at the National Investment Commission (NIC).
Efforts to reach Mamaka Bility did not materialize.
NIC declines to grant Pioneer Group LLC Concession
FrontPageAfrica has also seen a Memorandum of Understanding (MoU) signed this year between the government and Pioneer Group LLC (PGL) for the transfer of the PIOM Mining Concession to Pioneer Group LLC.
The Minister of Mines & Energy, Mr. Wilmot J.M. Paye, the Minister of Finance and Development Planning, Boima S. Kamara, and the Minister of Justice N. Oswald Tweh signed on behalf of the Government of Liberia, while Mr. C.R. Dann, Board Chief and Executive Officer of Pioneer Group LLC signed on behalf of the company.
However, Mr. Jeff Blibo, chairman of the National Investment Commission, declined to sign off on the deal despite reported pressure by Minister Bility. Attempts by FrontPageAfrica to contact Mr. Blibo on why he refused to sign to the MoU was unsuccessful as his phone rang endlessly without response.
Terms and Conditions of the MoU
In the MoU, the Pioneer Group LLC (PGL) committed to investing Two billion ($2.000,000,000.00) United States Dollars as more clearly, and also committed to pay the Government of Liberia an amount of US$600,000,000 for the transfer of POIM concession.
Deposit by PGL Within ten (10) days following the execution of this MoA, PGL shall deposit One Hundred Sixty-Five Million United States Dollars (USD $165,000,000.00) (the “Initial Deposit”) into the Escrow Account.
The agreement calls for PGL, within 10 days following the execution of the agreement, to deposit US$165,000,000.00, into an escrow account as initial deposit to GOL.
Additionally, as of the effective date of Concession Transfer Agreement (MOCTA), PGL will transfer the balance $500,000,000 to GOL, which will enable the government to grant a two-year moratorium after which PGL will transfer the due balance of US$500,000,000 Dollars of the investment amount to the GOL in two equal transfer payments over the following two years in Quarter four of each consecutive year.
These payments, according to the agreement, will be made into the government’s consolidated account. The balance of One billion and Four Hundred million ($1,400,000,000.00) United States dollars and in addition, funding from the mining operations and outside sources, will be set aside for the construction of the port, airport as well as the rail and paved road link from PIOM to the new port at Greenville, Sinoe County.
The government, however, according to the MoU, shall terminate, after 90 days, in the event that PGL is unable to get the consent and agreement of Severstal or Severstal is unwilling to transfer its Mineral Development Agreement (MDA).
However, FPA gathered that the company, PGL, is a sham and has no history of making any investment anywhere in the world.
FPA gathered that the deal is being pushed through as US sanctions on Alexey Mordashov, the owner of Putu Iron Ore parent company, have put the steel magnate’s empire in peril.
The move against 56-year-old Mordashov and his family in June 2022 came after the European Union imposed sanctions against the tycoon and his steelmaker Severstal PJSC in early March that year.
