Deal #5439

Location #1

Spatial accuracy level
Exact location
Location
Bong Town, Liberia

Latitude
6.807623373076913
Longitude
-10.276181057617123
Target country
Liberia

Land area

Intended size (in ha)
35200.0
Size under contract (leased or purchased area, in ha)
[2009] 35200
Comment on land area
352 square kilometers. Another source states that the size is 60629.08 ha while another claims it is 61319 ha (613.19 square km). Confirmation of the correct size currently taking place.

Intention of investment

Intention of investment
Mining
Comment on intention of investment
Mining – Iron ore

Nature of the deal

Nature of the deal
Exploitation permit / license / concession (for mineral resources)
Comment on nature of the deal
25-year Mineral Development Agreement (MDA)

Negotiation status

Negotiation status
[2008] Intended (Under negotiation)
[2009-01-09] Concluded (Contract signed)
Comment on negotiation status
agreement was signed on January 9, 2009. Another source states start date is 30:04:2009.

Implementation status

Implementation status
[2010] Startup phase (no production)
In operation (production)
Comment on implementation status
First shipment in 2013. The company suspended operations in late 2015 as a result of the twin shock—Ebola virus disease in Liberia and the price of iron ore. "There are reports that the Chinese multi-billion dollar iron ore mining company, China Union has allegedly gone bankrupt and is gradually selling its assets." The company states that this is not true.

Leasing fees

Comment on leasing fees
The company will pay surface rent for the concession area in the amount of US $100,000. The company is to pay another US $250,000 as surface rent. Data obtained from a formal source. In 2019, the Chinese company owed US$9m dollars as part of the Mineral Development Agreement (MDA) to the the Government of Liberia.

Contract farming

Contract farming
No

Contract #1

Contract date
2009-01-09
Contract expiration date
2034-01-18
Duration of the agreement (in years)
25

Number of total jobs created

Jobs created (total)
Yes
Planned number of jobs (total)
4000
Current number of jobs (total)
3000
Current number of employees (total)
300
[2017] 35
Comment on jobs created (total)
300 Liberian workers have been reduced to 35.

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
[2015] 422

Operating company

Comment on investment chain
Primary investor could also be China-Union Investment Liberia.

 

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Data source #1

Data source type
Other (Please specify in comment field)
File
Comment on data source
Mining atlas- Bong

Data source #2

Data source type
Media report
File
Date
2014-02-13
Comment on data source
Reuters- China-Union makes its first shipment of iron ore from Liberia

Data source #3

Data source type
Media report
File
Date
2015-08-19
Comment on data source
All Africa- Liberia: China Union to Close Operation? - Management Explains

Data source #4

Data source type
Other (Please specify in comment field)
File
Comment on data source
Aiddata- China Union Investment in Bong Iron Mines

Data source #5

Data source type
Media report
File
Date
2015-08-19
Comment on data source
China Union To Close Operation?…Management Explains

Data source #6

Data source type
Media report
File
Date
2009-02-20
Comment on data source
Africa Confidential- The born-again Bong mines

Data source #7

Data source type
Media report
File
Comment on data source
Bloomberg-- China-Union Investment Co., Ltd

Data source #8

Data source type
Media report
Publication title
China Union Closes Down Gradually – Leaves No Impact on Liberian Citizens
Date
2017-01-15

Data source #9

Data source type
Research Paper / Policy Report
Publication title
The mining sector of Liberia: current practices and environmental challenges
Date
2017-07-18

Data source #10

Data source type
Media report
Publication title
Liberia: Bong's China Union Us$7m in Limbo?
Date
2019-04-03

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
China Union agreed to provide an annual social contribution of US$3.5 million, to be managed and disbursed by the Liberian communities in the counties affected by the company operations

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Roads

Materialized benefits for local communities

Materialized benefits for local communities
Health
Education
Roads
Comment on materialized benefits for local communities
renovation of the Zaweata School,renovation of the Bong Mines Hospital which provided free medical care to residents of the district and nearby areas, the construction of the 45 km Kakata-Bong Mines road. The US$1.7 million annual social development fund.

Former land owner (not by constitution)

Comment on former land owner
Was previously mined but abandoned in 1989 due to the civil war in Liberia.

Detailed crop, animal and mineral information

Resources area
Iron ore

Use of produce

Has export
Yes

Water extraction envisaged

Water extraction envisaged
Yes

Overall comment

Overall comment
"There are reports that the Chinese multi-billion dollar iron ore mining company, China Union has allegedly gone bankrupt and is gradually selling its assets." (2015). The company states that this is not true.

April 6, 2020, 11:50 a.m.

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April 13, 2017, 7:15 p.m.

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April 13, 2017, 5:20 p.m.

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April 7, 2017, 4:36 p.m.

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