ELENILTO SLAMS 'BOGUS' LABEL

CEO Slams critics, Terms Allegations that the company Lacks Capacity as Irresponsible, says firm is in Liberia for the long haul to bring prosperity to lucrative Western Cluster

  David B. Kolleh, david.kolleh@frontpageafricaonline.com, (231 631 0032)

The Chief Executive Officer (CEO) of the Elenilto Mineral Mining Limited has told a gathering of world class investors currently in Liberia to access the country’s postwar investment opportunities that his company is not a ‘fly-by-night’ company or a bogus company as expressed by some Liberians over the last few days.

Strong technical, capital base

Mr. Amir Nagammy told his colleagues that his company has a strong and technical capital base to carry on the mining activities in the Western Cluster Iron Ore Mine concession area contrary to recent comments coming from Mr. Sam Jackson, Dr. Togba Nah Tipoteh as well as other civil society groups all of whom have called on central government and the Liberian legislature to have a second look at the deal.

For winning the bid, Elenilto is expected to invest US$2.4 billion in the development of the Western Cluster Iron.

According to the CEO, Liberia has great investment potentials and opportunities and his company was now set to contribute to the economic recovery of the country.

Said Nagammy: “Our company is not a fly-by-night company or a bogus one, as some people who have paid to engage in a smear campaign against us have said. This campaign by paid agents is intended to scandalize the name of our company without any supporting facts. But we will not be deterred in moving on as planned. We are here to do business as a means of shaping the economic environment of this country. It is our hope that by 2012-2115 we will commence full operations in the Bomi Mountain once the mineral Development Agreement is signed with the Liberian government.”  Nagammy said in a strong tone.

Prepared for the task

Mr. Nagammy said his company was prepared to make the Western Cluster concession area which has  been economically irrelevant for years due to the war more viable to the country through the creation of jobs, developing the concession area, thereby transforming the lives of the people in Bomi, Cape Mount and Gbarpolu counties.

He maintained that his company has a strong financial partner with the requisite technical capacity carry on full scale mining as promised the Liberian people. Mr. Magammy said his company has presented its bank guarantee to the Liberian government and has a partner with over 50 years of mining experience and well balanced financial standing.

Elenilto’s CEO further told his audience that his company was prepared to not create jobs and help accelerate infrastructure growth and development in the concession area but, was also to prepared to providing training opportunities for local community dwellers and the construction of roads and bridges in the concession area.

Mr. Magammy also said, as part of Elenilto's winning, it is expected to pay the government US$25 million and make an additional US$3.1 million every year as contribution to the community development and additional payment to the government as mineral resource rent tax (surcharge) equal to 21 percent from Elenilto's profits. As for the US$ 25 million according to the company’s chief Executive Officer they have already opened a separate account to show that the company will be able to meet its financial obligations as part of the biding process requirement.

“The Western Cluster Iron Ore project comprises several deposits covering about 207.58 square kilometers and consists of two formerly mined deposits and one Greenfield deposit. The Mano River Iron Ore deposits, formerly mined by the National Iron Ore Company (NIOC) has a known or proven reserve of about 80 million tons; the Western portion of the Bomi Hills Iron Ore deposits, formerly mined by the Liberia Mining Company (LMC), has a known reserve of 50 million tons; and the Bea Mountains Iron Ore deposits, never mined before, has an estimated reserve of over 923 million tons is also within the concession area granted to the company. We will, if the MD is signed begin implementing the project to bring the needed benefits to the people of Liberia and our Company” Mr. Amir Magammy further said.

Nagammy  said he was not only in Liberia to invest, but has decided to take Liberia his own country. “We will be going beyond the normal mark by creating extraordinary opportunities for our people. Ever since I have been in Liberia, more than three years now, the warmness of Liberians have convinced me to understand that I am home and have therefore made Liberia my home.”  

It can be recalled that a Liberian economists Sam Jackson last week told journalist that he has evidence in his possession that seemed to have suggested that the Elenilto deal was marred by fraud.

Mr. Jackson  speaking to an audience of University of Liberia (UL) students on the achievement of the poverty reduction strategy by the Ellen Sirleaf administration said of Elenilto as being a “bogus company” that was incompetent of effectively managing the concession it is fronting to have, an argument that have seen a strong counter thesis.

 Mr. Jackson had also argued that Inter-ministerial Concession Committee failed to do due diligence during the process of awarding the concession agreement to Elenilto. This he said has created serious embarrassment for the government because of similar action that took place in the past; making reference to the Oranto oil deal. The Oranto, was a company that applied with the Liberian government in 2005 to drill off shore oil on the Liberian waters, but sold its share of 70% Chevron, an American Oil Company for more than US$250 million, an amount that Liberia only received US$15 million in taxes.   

“Oranto Oil Company that came here in 2005, its first check of US$10,000 bounced after we gave them free oil blocks. This company last year sold the oil blocks to Chevron US$250 million and paid US$15 million in taxes and left Liberia, what benefit they give Liberia compare to what they carried away?.” Mr. Jackson had asked.