Chinese mining company to boost Liberia's revenue

A senior official of the government of Liberia has told members of parliament that the resumption of mining activities by China Union Mining Company this year will boost government revenue generation and create more jobs for Liberians.

Finance and Development Planning Minister Samuel D. Tweah told lawmakers on Friday that the government, the company and the Chinese embassy in Monrovia held several conversations aimed at resumption of mining activities.

"These discussions were fruitful and positive, because, as you are aware, the company has a 25-year mineral development agreement since 2007 with the government of Liberia."

Tweah said that the fall in the global price of iron ore was one of the reasons why the company slowed its operations.

He said the impacts of Ebola in 2014 and the COVID-19 pandemic have placed the government in a tight fiscal space. But with signs that the China Union will be resuming operations, government revenue will get some boost.

China Union Mining Company signed a 25-year mineral development agreement with the government of Liberia in 2007. The investment was considered one of the largest foreign direct investments on Liberian soil.

In the agreement, over 4,000 skilled and unskilled jobs are to be provided by the mining company for Liberians.