Iron ore mining deal in Liberia

Mr Jacob Engel has been granted a 25 year licence for the mining of iron ore in Liberia. Mr Engel won the tender through Elenilto, which he controls. As part of the development of the mining sites, Elenilto will build a railroad track, improve the port and invest in other infrastructure. In return for the licence, Elenilto will pay Liberia an advance payment of USD 25 million, annual payments of USD 3 million a year as social payments and 21% of the profits. Mr Engel noted that the Western Cluster tender included a group of three mines, with reserves of more than 1.1 billion tonnes of iron ore. Mr Amir Nagammy, head of Elenilto's Liberia operations, said the mines likely had reserves at least three times more than expected.