By: Keith Morrison |Staff Writer
Montserrado, Capitol Hill-Friday, March 14,2025-The House Joint Committee on Investment and Concession today continued its public hearing with China Union Company Ltd, requesting the company to submit a comprehensive report detailing the progress and implementation status of the recommendations adopted by the Plenary of the House of Representatives.
Appearing before the committee, China Union Investment (Liberia), Bong Mine Co. Ltd, Chief Executive Officer (CEO) Mr. Bai Peng thanked the House Committee for its consistent support and cooperation regarding the Bong Mine iron ore project.
He submitted a report outlining the latest development measures and subsequent plans as follows:
I. Completed Items
• Social Security Fees: China Union has paid $140,240 in social security fees for all Liberian employees. The payment voucher will be submitted to the Joint Committee for verification.
• Community Contribution Funds: China Union will pay $2 million to the community development funds of the three beneficiary states after the project is completed, put into production, and the first shipment of iron ore is made. The first payment of $500,000 was made before December 25, 2024, the second payment of $500,000 was made at the end of December 2024, and the remaining $1 million will be paid off by the end of April 2025.
• Personal Protection Equipment (PPEs): China Union has provided necessary PPEs for workers. A contract with local manufacturers has been signed to produce and install safety signs, and all employees and contractors have received safety training.
• Surface Rent: China Union has paid $100,000, with the remaining balance to be paid promptly after the project is put into production and the first shipment of iron ore is made.
• Scientific Research Fund: China Union has paid $100,000 for this year. The outstanding balance payable will be confirmed with the Liberia Revenue Authority (LRA) and is scheduled to be paid after the project is completed, put into production, and the first shipment of iron ore is made.
• Drinking Water: China Union has provided safe drinking water for all Liberian employees of Bong Mine and their families.
• Scholarships: China Union has provided $50,000 in scholarships for students in the recipient country. The required scholarship donations per the Mineral Development Agreement (MDA) will be paid after the project is completed, put into production, and the first shipment of iron ore is made.
II. Upcoming Tasks
• March 2025: China Union will start repairing the road from Bong Town to Hyendi and conduct an assessment and technical feasibility study on the comprehensive renovation of the section from Kakata to Hyendi.
• April 2025: China Union will provide $20,000 worth of medicines and supplies according to the material demand list submitted by Bong Mine Hospital. Additionally, China Union will commission a Liberian company to evaluate the hospital’s renovation needs. Based on the evaluation results, the renovation contract will be tendered within 90 days.
• May 2025: China Union will provide $20,000 worth of textbooks based on the list submitted by Bong Mine Central High School.
• May 2025: China Union will recruit local Liberian employees, including production operators and administrative staff, according to the project promotion plan, and will organize corresponding on-the-job skills training and safety education.
III. Challenges Encountered
1. Financial Pressure: In 2025, the company’s priority is the timely completion and production of the mining and beneficiation project.
The procurement, transportation, installation, commissioning, and production of equipment, as well as port and railway maintenance, require substantial financial resources, posing a challenge to the company.
2. Iron Ore Market Downturn: The global economic downturn has led to reduced demand for steel, causing steel mills in China and other countries to operate at low capacity. As of February 2025, the Platts Iron Ore Index remains around $100 per ton, below the project’s feasibility study benchmark of $120 per ton. A prolonged price decline could impact the project’s profitability.
IV. Implementation Plan for the Mining and Iron Ore Processing Plant
The project is designed to produce 1.5 million tons of iron concentrate annually, with an iron grade of 62%.
• March 2025: Equipment and materials will arrive at the construction site.
• April 2025: Civil construction will be completed.
• May 2025: Equipment installation will commence.
• June 2025: Equipment commissioning will begin.
• July 2025: Trial production will start.
• August 2025: Full production is expected to commence.
Following the CEO’s presentation, the committee voted to reschedule the hearing for next Thursday, where representatives from the Ministry of Finance, Ministry of Labor, Ministry of Mines and Energy, and the Liberia Revenue Authority will appear alongside China Union.
Committee Chair Hon. Foday Fahnbulleh emphasized that the committee will thoroughly investigate the matter in the interest of Liberians employed by the company.
Edited: Jesefu Morris Keita| Editor-In-Chief
