Mr. Robert M. Friedland, Founder and Executive Co-Chairman of Ivanhoe Mines, and Founder of I-Pulse, the majority shareholder in Ivanhoe Atlantic (formerly High Power Exploration/HPX), has arrived in Liberia for a meeting with President Boakai. He is joined by the President and CEO of Ivanhoe Atlantic, Ms. Bronwyn Barnes and other Corporate Executives.
The meeting is intended to discuss final plans for concluding the Access and Concession Agreement between the Government and Ivanhoe Atlantic. The Boakai Administration has set a policy objective of transitioning to multiuser rail and independent operator by 2030 when ArcelorMittal Liberia's (AML) current Mineral Development Agreement (MDA) ends. Any future Agreement between AML and the GOL under its new policy is to encompass Multi-user Access to the Yekepa to Buchanan Port railway. This policy applies to all other rails, including those to be developed. Ivanhoe Atlantic is scheduled to commence phase two of its project and ramp up to 30mtpa (million tons per annum) in 2030.
In the meantime, upon conclusion of negotiations, beginning now and during the next five years, phase one commences with shipping 2mtpa to 5mtpa on the current rail which is still operated by AML. A final agreement with the Government will immediately grant Ivanhoe Atlantic access to commence shipping through Liberia on the existing rail along with AML. The 2005 AML MDA maintained the GOL's sovereign authority to assign excess rail capacity to third party users, as long as that does not unreasonably interfere with AML operations. Under the proposed Access and Concession Agreement with Ivanhoe Atlantic being negotiated, the GOL is essentially for the very first time exercising its authority to allow third party access.
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In addition, once a final Agreement on rail access is signed, Ivanhoe Atlantic will commence the Feasibility and Engineering studies for the long talked about parallel rail dubbed The Liberty Corridor, which will expand the current capacity of the single rail line, allowing for other sectors to use the Corridor besides mining companies.
The company has presented a comprehensive fiscal package to Liberia as reported in the media, which includes US$37 million already paid in 2022, US$25 million to be paid under this Agreement if ratified, plus a pledge of US$10 million to support the National Rail Authority over the next three years. In addition to that, millions of dollars in planned infrastructure investments in Tokadeh, Nimba and the Buchanan Port for its operations. The company has proposed a haulage fee of US$2.10 per ton for using Liberia's rail over the 25 years life of its Concession which will generate over US$1.6 billion in Government revenue, plus another US$600 million in projected taxes.
Ivanhoe Atlantic owns the Kon Kweni Mines in the Nimba region of Guinea and has always preferred the much shorter evacuation route through Liberia. For years, AML reportedly objected to multiuser rail access, until the Boakai Administration made multiuser rail access its policy and have now communicated that policy in both an Executive Order (EO136) and in negotiations last week with ArcelorMittal.
The portfolio of publicly traded and private companies presently associated with Robert Friedland include Ivanhoe Capital, Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF), Ivanhoe Electric (NYSE: IE; TSX: IE), Sunrise Energy Metals (ASX: SRL) I-Pulse, Ivanhoe Atlantic (formerly High Power Exploration), VRB Energy, and Pure Lithium.
