Monrovia — A January 15, 2025, letter from the Chairman of the Senate Foreign Relations Committee (SFRC) to Secretary of State Antony Blinken has shed new mild on U.S. coverage concerning Liberia’s National Rail Authority (NRA). The improvement comes as President Donald Trump returns to the White House, pledging to scrutinize U.S. international coverage in step with his “America First” agenda.
By Gerald C. Koinyeneh, [email protected]
The SFRC letter confirms that funding for the NRA by the Countering People’s Republic of China Influence Fund (CPIF) was blocked, straight contradicting claims made by High Power Exploration (HPX). This revelation highlights the dearth of U.S. authorities help for HPX’s efforts to align the NRA with U.S. strategic pursuits within the area.
The SFRC Letter and the NRA
The SFRC letter particularly mentions that CFIP funding for Liberia’s NRA was denied, citing broader considerations concerning the effectiveness and transparency of CFIP implementation. This straight undermines HPX’s narrative, which has lengthy urged that the NRA aligns with US targets to counter Chinese affect.
“The Department also used weak or even bogus counter-PRC justifications to secure CPIF funding,” writes Senator James Elroy Risch, Chairman, US Senate Foreign Relations Committee. “In September, I blocked a CPIF project supporting the establishment of a National Railway Authority in Liberia. SFRC oversight revealed the project would not strengthen Liberia’s ability to compete with PRC-supported mining operations in the country… Embassy staff admitted to leveraging CPIF’s broad guidelines to fabricate a counter-PRC nexus, and to repurposing the initiative to address unrelated objectives.”
HPX is a privately-held US-based mineral exploration and improvement firm owned by Robert Friedland as its founder, chairman, and CEO. HPX is targeted on creating the Nimba iron ore undertaking in Guinea. In order to move its iron ore from its Nimba Iron shield, HPX has been persuading the Liberian Government for entry to rail.
In February, HPX signed a letter of intent with the Liberian authorities, pledging to finance a multi-billion-dollar “Liberty Corridor” in partnership with Guma Africa Group, led by Robert Gumede of South Africa who has a detailed tie with China. Gumede was one of many fundamental figures behind the Boakai-Koung authorities disastrous 285 yellow machine deal, or “gentlemen agreement”.
The Letter of Intent supplies that HPX and Guma Africa Group will enter into negotiations with the Government of Liberia to agree the framework granting unique rights to develop, finance and grant working rights to the Liberty Corridor. The three events will kind a tripartite Liberty Corridor Project Steering Committee to liaise with all stakeholders and potential worldwide financiers
However, regardless of these grandiose plans, HPX is concurrently pushing for entry to the present Yekepa-Buchanan railway, operated by ArcelorMittal, which has already invested over $800 million in rehabilitating the road.
To get both of those targets [Liberty Corridor or current Yekepa-Buchanan Railway) achieved HPX has backed the creation of the NRA to do its biddings. The firm has aggressively promoted the NRA as a US-backed initiative, utilizing this false narrative to stress Liberian officers into advancing the undertaking. The actuality, as revealed within the SFRC letter, is that no such alignment exists. Instead, the NRA’s main beneficiary seems to be HPX itself, which goals to make use of Liberia’s rail infrastructure to move assets from its Guinean operations.
HPX’s Exploitation of Liberia
HPX’s agenda is obvious: to leverage Liberia’s rail infrastructure to reinforce the worth of its Guinean property, which it reportedly plans to promote to a Chinese purchaser. This technique starkly contradicts US strategic targets beneath CFIP and divulges the hypocrisy of HPX’s claims to align with US insurance policies.
Meanwhile, HPX’s actions have created vital disruptions in Liberia’s mining sector. The firm has been a persistent impediment to the ratification of the third modification to the Mineral Development Agreement (MDA) between Liberia and ArcelorMittal (AML). Unlike HPX, AML has a confirmed monitor report of investing in Liberia’s economic system, contributing to job creation, infrastructure improvement, and authorities revenues. HPX, in contrast, presents little tangible profit to Liberia, focusing as an alternative on its Guinea-centric pursuits.
The Danger of Misinformation
Experts say the SFRC letter underscores the significance of transparency and accountability in international coverage choices. They add that HPX’s makes an attempt to misrepresent US help for the NRA not solely mislead Liberian officers but additionally undermine the nation’s sovereignty by selling a undertaking that primarily serves exterior pursuits.
By falsely linking its agenda to US strategic targets, observers warn that HPX dangers diverting Liberia’s consideration from extra impactful and nationally useful improvement alternatives. These embody AML’s proposed investments, which align with Liberia’s long-term financial targets.
The unfold of misinformation will not be new, however its present affect is critical. It is affecting AML’s operations as the corporate prepares to increase beneath a revised mining improvement settlement (MDA), which is presently being negotiated by the Liberian authorities. Concerns have surfaced a few coordinated effort to derail the deal within the legislature. Reports counsel a possible misinformation marketing campaign aimed toward stalling the settlement, thereby threatening the nation’s financial progress.
Sources acquainted with the scenario allege that HPX and its allies are getting ready to launch a propaganda marketing campaign just like their 2021 efforts, which derailed AML’s concession settlement. During that interval, misinformation centered on the administration of the Yekepa-Buchanan rail and port infrastructure, which had been rehabilitated by AML. A legislative supply disclosed that conferences are allegedly being held with some lawmakers to undermine the MDA as soon as it reaches the legislature.
Following the derailment of the AML deal in 2021, HPX allegedly pursued unconventional strategies to strip AML of its rail operation rights. Despite these efforts, HPX has thus far been unable to attain its targets. The administration of President Joseph Boakai seems decided to prioritize the rapid advantages of the AML deal—together with hundreds of latest jobs for Liberians and vital financial contributions equivalent to royalties, taxes, and social improvement funds, projected to achieve $200 million yearly by 2027.
A Call for Sovereignty and Strategic Thinking
Liberia should reject HPX’s false narratives and prioritize insurance policies that genuinely align with its nationwide pursuits. The SFRC’s resolution to dam funding for the NRA beneath CFIP reinforces that US help can’t be co-opted to serve personal agendas. Instead, Liberia ought to concentrate on fostering partnerships that contribute to sustainable progress and respect its sovereignty.
Conclusion: A Clearer Path Forward
Experts say the SFRC’s January 2025 letter serves as a important reminder that Liberia’s improvement path should be guided by reality and accountability, not the manipulations of international entities. Thay say HPX’s false claims about US help for the NRA have been debunked, exposing the corporate’s agenda as one which prioritizes its personal positive aspects over Liberia’s future.
“Liberia’s leaders must focus on building partnerships with credible investors, whose commitments to the country’s economic growth and infrastructure development stand in stark contrast to HPX’s exploitative tactics. By rejecting misinformation and asserting its sovereignty, Liberia can chart a course toward meaningful and sustainable progress.”