The country's Mines Minister has said that Liberia expects its iron ore production to triple this year to 30 million metric tons, driven by ArcelorMittal Liberia (AML)'s planned ramp-up, and "fresh volumes" from new and revived project,

AML, the main mining company, is expected to produce a total of?10 millions tons by 2025.

ArcelorMittal, a Luxembourg-based company, is expanding its Liberian operation. This includes a new concentrator as well as major upgrades to the rail system and ports. Last month, it announced that 20 million tons of ore would be shipped from Liberia by 2026. This is an increase from the historic level of 5 million tons annually.

A new long-term contract that pays $200 million to the government also includes an expansion of the railway's capacity up to 30 million tons annually.

NEW ENTRANTS TO COMPLEMENT OUTPUT

Iron ore prices will increase in 2025 due to China's record imports and the tightening of the seaborne market.

Matenokay Tingban, a mining expert from Africa, said that ArcelorMittal would be able to reach 20 million tonnes this year.

He said that Liberia will reach 25-30 million tons of coal once all producers "come on line." This year, as Bao Chico resumes its operations, new producers Cavalla Resources, Westcrest, and Zodiac are expected to begin production. As the Dugbe Mine of Mansa Resources ramps up, gold production will also increase.

Minister said that the government had ordered the Liberia Geological Survey (LGS) to catalog and study new critical mineral targets, after Chinese geochemical research detected lithium and other strategic components.

NEW MINING ?CODE EXPECTED IN THREE MONTHS

African governments are pushing for mining code revisions to maximize the value of surging commodity prices.

Tingban also said that Liberia would be accelerating a'review of its mining laws within three months. This will include proposed changes to the licensing regime and a framework for a mining company national to take stakes.

He said that the core fiscal shift will introduce free-carried equity from the state of between 10%-15% for each project with a target long-term of 25%.

The minister stated that "we are moving away from a royalties-only approach towards equity participation?to maximize returns, fund infrastructure and to create jobs."

Heavy mineral sands royalty rates will remain at 8%.

The Ministry of Justice will decide whether or not new equity terms apply to existing projects.

We expect the overall mining production to rise from 15% in 2024 to 50% by 2024, depending on how quickly new producers are brought online. (Reporting and editing by Jan Harvey; Maxwell Akalaare Adombila)

(source: Reuters)