Mittal to up Liberia investment to US$1,5b

MONROVIA – Arcelor Mittal, the world’s largest steelmaker, said on Wednesday it will increase investment in an iron ore project in Liberia by US$500 million to US$1,5 billion in a vote of confidence in President Ellen Johnson-Sirleaf’s government.

Chief Executive Lakshmi Mittal told a joint news conference with Johnson-Sirleaf that his company aimed to ship its first iron ore cargo from the war-ravaged West African country by mid-2009 and expected to reach 15 million tonnes of shipments by 2011. “We are excited about the project and we are ready to increase our investment programme from US$1 billion to US$1,5 billion,” the Indian billionaire told reporters.”When madam president came into power there was a lot of scepticism and now this scepticism has gone,” he added.”The country is moving towards democracy with a stable government …This gives us the confidence (to increase our investment).”Drilling at the mine site was due to begin on December 26, he said.The 25-year deal signed in December gives Mittal the right to mine a huge, high-quality ore body in northwest Liberia with reserves currently estimated at 500 million tonnes of iron ore.A 14-year civil war, which ended in 2003, ravaged Liberia’s infrastructure, killed some 200 000 people, and devastated an economy which was once one of the most prosperous in the region.Before the conflict, Liberia was the world’s fifth largest producer of iron ore.Unemployment now stands at around 80 per cent.Nampa-Reuters”We are excited about the project and we are ready to increase our investment programme from US$1 billion to US$1,5 billion,” the Indian billionaire told reporters.”When madam president came into power there was a lot of scepticism and now this scepticism has gone,” he added.”The country is moving towards democracy with a stable government …This gives us the confidence (to increase our investment).”Drilling at the mine site was due to begin on December 26, he said.The 25-year deal signed in December gives Mittal the right to mine a huge, high-quality ore body in northwest Liberia with reserves currently estimated at 500 million tonnes of iron ore.A 14-year civil war, which ended in 2003, ravaged Liberia’s infrastructure, killed some 200 000 people, and devastated an economy which was once one of the most prosperous in the region.Before the conflict, Liberia was the world’s fifth largest producer of iron ore.Unemployment now stands at around 80 per cent.Nampa-Reuters