Liberia eyes $3bn investment in mining sector
Liberia is anticipating a significant economic boost following the discovery of substantial mineral deposits, as announced by President Joseph Boakai. Traditionally recognized for its iron ore and rubber industries, recent studies funded by China have unveiled that Liberia also possesses reserves of uranium, lithium, cobalt, manganese, and neodymium.
The government is currently engaged in negotiations with multinational corporations and local investors to develop these newly identified mineral resources. These discussions aim to attract approximately $3 billion (L$594.96 billion) in investments, targeting sectors such as energy, infrastructure, and technology.
Economic growth
This influx of capital is projected to enhance Liberia’s economic growth, with forecasts indicating an increase to 5.8% in 2025, up from an estimated 5.1% in 2024. Additionally, inflation rates are expected to decline to 6% by the end of 2025, despite central bank projections of a rise to as much as 12.3% by the end of March.
According to World Bank data, this accelerated growth could contribute to a reduction in Liberia’s poverty rate, potentially decreasing to 27.8% this year from 31% in 2023. Since 2013, companies such as Hummingbird Resources and Avesoro Resources have been actively involved in exploration and feasibility assessments within Liberia’s mining sector.
Avesoro Resources, through its subsidiary Bea Mountain Mining Company, has developed the New Liberty Gold Mine, considered Liberia’s first and largest commercial gold mine. The Central Bank of Liberia reported a 49% increase in gold production and a 12% decrease in diamond production in 2022.
Furthermore, in September 2021, ArcelorMittal committed to expanding its mining operations in Liberia by signing an agreement to extend its presence in the country. These developments underscore Liberia’s potential to diversify its economy and strengthen its position in the global mining industry.
