THE government of Liberia has signed a letter of intent with High Power Exploration (HPX) and Guma Africa Group to enter into negotiations over the joint development of the Liberty Corridor connecting Guinea and Liberia.
This will include a new railway connecting Guinea with a new deepwater port at Didia in Liberia.
The three project partners have begun exclusive negotiations, which over a 30-day period will aim to conclude a final framework agreement to design, finance and develop the Liberty Corridor and grant operating rights.
This negotiation period can be extended, and once the framework agreement has been concluded it will be presented to the Liberian legislature for ratification.
HPX is a US-based mining development company currently focused on expanding production at its high-grade, long-life iron ore mine in the Lola region of southeastern Guinea.
The company says that the Liberty Corrdor, including a new multi-user heavy haul railway, will involve investment estimated at $US 3-5bn. This has the potential to transform the mineral-rich Nimba region, while stimulating mining activity as well as agriculture, manufacturing, health and education, creating sustainable jobs and dramatically improve the quality of life for the region’s inhabitants.
“HPX looks forward to being part of the growth of Liberia’s mining industry and working collaboratively with the government of Liberia to expand both the mining sector and multi-user infrastructure opportunities centred around the Liberty Corridor,” says HPX president and CEO, Ms Bronwyn Barnes.
“The Liberty Corridor will be a world class infrastructure development that will include a brand new rail system constructed within the existing Yekepa - Buchanan infrastructure corridor.”
“I am delighted to partner with HPX as we pool our resources to transform both Guinea and Liberia’s economies through the development of the Liberty Corridor that can unlock mining, agriculture and industrialisation of the two countries and the creation of sustainable jobs,” says Guma Africa Group chairman and founder, Mr Robert Gumede.
“Our joint partnership with HPX will support Liberia’s long-term investment policies.”
“The US government’s consideration of the potential for the Liberia - Guinea corridor is extremely encouraging,” says HPX chairman, Mr Peter Pham.
“The opportunities that a new, world-class infrastructure corridor will offer are in line with the objectives of the US government strategy towards Sub-Saharan Africa, and the commitments given by president Biden and the G7 in a flagship infrastructure initiative, the Partnership for Global Infrastructure and Investment.”
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