Ivanhoe Atlantic gets Liberia nod for iron ore transport

Robert Friedland-backed developer Ivanhoe Atlantic has secured approval to use Liberian transport and logistics infrastructure as part of its efforts to mine and export high-grade iron ore from the Kon Kweni project in Guinea.

Liberia’s government has accepted the environmental and social impact assessment (ESIA) submitted for Phase 1 project activities, the company said Wednesday in a statement.

The ESIA approval underscores the company’s “strong and collaborative relationship with the government of Liberia” while reinforcing its commitment to developing “multi-user infrastructure that generates long-term economic value,” said Ivanhoe Atlantic executive chairman Peter Pham.

The milestone follows the ratification in December of an agreement that lets Ivanhoe Atlantic access Liberian multi-user rail and port infrastructure. The company has said it expects to pay the African nation about $1.4 billion in rail user fees, plus $600 million in other taxes and charges.

Final approvals from the government of Guinea will be sought in the coming weeks, Ivanhoe Atlantic added.

Infrastructure development

Liberia and Guinea have a bilateral agreement that promotes shared use of transport infrastructure. Kon Kweni is located 16 km from the nations’ borders and 46 km from the northern end of the Yekepa-Buchanan railway.

The ESIA, conducted by local environmental and social advisory firm Earthtime Group, evaluates the potential impacts of the Phase 1 project development on the Liberian side, namely the establishment and operation of multi-user rail and port infrastructure to support ore exports from Kon Kweni.

The deposit, which is 85% owned by Ivanhoe Atlantic and 15% by the Guinean government, holds a resource totalling 751.9 million tonnes in direct ship ore, of which 209 million is high-grade ore at 67.8% iron.

Mining will start at 2 million tonnes a year before ramping up to 5 million tonnes. Construction of the Phase 1 mine is expected to begin this quarter. Further expansions have been planned, including a second phase that’s slated to begin in 2029 to lift the capacity to 30 million tonnes.

Future expansions will be subject to separate regulatory approvals and environmental and social assessment processes, Ivanhoe Atlantic said.