Extractives Sector Contributes 17.16% To Liberia’s Domestic Revenue, Latest Report Shows
By Juliet Ukanwosu
The 15th Extractive Industries Transparency Initiative (EITI) Report for Liberia covering the fiscal period July 1, 2021, to December 31, 2022, has showed that total revenues from the extractive sector amounted to $182.35 million, accounting for 17.16% of government’s domestic revenue for the period under review.
The report was launched on Tuesday in Monrovia by the Multi-Stakeholder Steering Group (MSG) of the Liberia Extractive Industries Transparency Initiative (LEITI), Extractive360 reports.
In March 2023, the MSG commissioned the production of the 15th EITI Report for Liberia covering the fiscal period July 1, 2021, to December 31, 2022, under the traditional reconciliation framework. The 15th Report is the first reconciled report post-Covid, and it captures 21 in-scope companies across three of the four covered sectors and 10 government institutions.
According to a statement signed by Mike Doryen, Chairman, LEITI MSG, the Report includes contextual information about the extractive industries under EITI Requirements 2, 3, 4, 5, and 6. “These pieces of information include a summary description of the legal framework and fiscal regime, an overview of the extractive sector, Beneficial Ownership Disclosure, Contract Transparency, the extractive industries’ contribution to the economy, production and exports data, the State’s shareholding in extractive entities, revenue allocations, license registers, and license allocations,” Doryen said.
A review of the Report showed that the period’s top contributors to government revenue were Arcelor Mittal Liberia Limited, Bea Mountain Mining Company, and Firestone Liberia Incorporated, contributing 78 million, 37 million, and 17 million, respectively, to total Government revenue for the period.
In the period under review, extractive companies’ social and environmental expenditures amounted to $34 million, of which mandatory social spending amounted to $28 million, voluntary social expenditure amounted to $5 million, and environmental mandatory expenses and voluntary environmental expenditures amounted to $1 million each.
Further review of the Report shows that gold production stood at fourteen thousand and ninety-two kilograms (14,092 kg), iron ore production was six million, eight hundred and fifty-two thousand, nine hundred and ninety-nine metric tons (6,852,999 metric tons), while diamond production stood at eighty-seven thousand, seven hundred and thirty-two carats (87,732 carats), with round logs production at two hundred and sixty-three thousand, three hundred and twenty-three cubic meters (263,323 cubic meters).
The statement which was made available to Extractive360 also showed that rubber production was one hundred and twenty-nine thousand, four hundred and seventeen tons (129,417 tons), with crude palm oil production standing at fifty-three thousand, nine hundred and forty metric tons (53,940 metric tons).
The Report further showed that the value of exports from the mining, forestry, and agriculture sectors amounted to one billion, four hundred and seventy-two million dollars ($1,472 billion), accounting for 99.23% of the total exports of the country during the period under review.
Bea Mountain Mining Corporation contributed to Liberia’s exports with 48%, followed by Arcelor Mittal with 40% and MNG Gold with 9%, the report pointed out.
On contributions to employment, the Report indicates that 12,017 people were employed in the mining, agriculture, and forestry sectors in 2022, representing 0.50% of the country’s labor force, with 21% of the 12,017 being female workers.
Doryen informed that Liberia has taken a significant step towards transparency in company ownership with the launch of its new Beneficial Ownership (BO) register. He said the new digital BO register is part of Liberia’s work to promote transparency and accountability and ensure that the benefits of its industries are fairly shared among all citizens.
Similarly, he said, while efforts are underway to formalize the artisanal mining sector, the LEITI has taken a significant step in the summarization of the environmental and social standards laws for the Artisanal and small-scale mining sector of Liberia to help sector actors understand and comply with environmental and social requirements relative to artisanal mining.
Furthermore, to address reporting challenges, where some government institutions and companies deliberately refuse to provide requested extractive sector information for report production, the MSG has mandated the LEITI Secretariat to bring into force the Body’s Regulations 001 during and after the production of Liberia’s 16th EITI Report.
“By this, the Secretariat will extract from the final 16th EITI Report all delinquent government institutions and companies and publicly name and shame them. The MSG believes this will ensure compliance and adherence to EITI implementation in the country,” Doryen stressed.
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