Monrovia — A new assessment has uncovered major financial leakages, environmental damage, and governance failures in Liberia’s mining sector, raising fresh concerns about the country’s ability to meet its development and climate goals.
By Gerald C. Koinyeneh, gerald.koinyeneh@frontpageafricaonline.com
The report, titled “A Rapid Assessment of Liberia’s Mining Sector with a Focus on the Local Impacts on Forests and People,” was commissioned by Forest Trends and conducted by Liberian and international experts using data from institutions including the Liberia Extractive Industries Transparency Initiative (LEITI).
Billions Unaccounted For
According to the findings, mining companies paid more than US$844 million to the Government of Liberia between 2007 and 2023. However, the report highlights a massive discrepancy when compared to international trade data.
Importing countries reported receiving US$7.8 billion worth of Liberian mineral exports—primarily gold and iron ore—representing a staggering US$2.7 billion (43%) more than Liberia officially recorded.
The report warns that the gap points to possible smuggling, underreporting, and tax evasion practices such as fraudulent transfer pricing, compounded by weak oversight and lack of transparent reporting.
Liberia is rich in natural resources, with iron ore and gold as its leading mineral exports. However, revenue generated from the sector has historically failed to trickle down to the broader population.
Communities Missing Out
The assessment also reveals that communities affected by mining operations are being deprived of their entitled benefits.
Under Mineral Development Agreements, large-scale mining companies were expected to pay over US$173 million to host communities by 2023. But at most, only US$119 million was reportedly paid, with an additional US$12 million provided in kind.
Even more concerning, the report indicates that communities have not fully received these funds, as payments were reportedly redirected through county authorities instead of dedicated community development funds.
An audit by the General Auditing Commission further uncovered “gross violations” and weak oversight by the Ministry of Internal Affairs in managing these payments. The Ministry of Internal Affairs, now Local Government has not responded to report up to time of publication.
Additionally, companies holding exploration licenses are required to allocate at least two percent of their budgets to local development projects such as schools and clinics for each year. The report notes there is no clear evidence this requirement is being enforced.
In many affected communities, basic services remain inadequate. Schools and clinics lack essential materials, including textbooks, salaries for volunteer teachers, and critical medical supplies and equipment.
Environmental Crisis Deepens
Beyond financial losses, the report paints a troubling picture of environmental degradation.
It cites increasing deforestation linked to mining, poor handling of hazardous chemicals, and widespread water pollution. Monitoring and enforcement remain weak, despite efforts by the Environmental Protection Agency.
In 2025, the EPA identified widespread environmental violations nationwide. More recently, reports of repeated chemical spills by Bea Mountain Mining Corporation have intensified concerns about regulatory compliance.
The study also found that mining licenses now overlap more than two million hectares of forest, including protected areas, logging concessions, and community forests. The situation is further compounded by unregulated artisanal and illegal mining activities, which remain largely undocumented.
Liberia holds about 40 percent of the remaining Upper Guinea Forest in West Africa. However, experts warn that the country’s deforestation rate is rising, and significant forest loss is likely if urgent measures are not taken.
Rising Tensions, Threats to Stability
The report warns of growing tensions between mining companies and local communities, driven by land disputes, environmental damage, and unmet obligations.
If left unchecked, these conflicts could escalate into violence, legal battles, and broader instability.
It also cautions that ongoing mining expansion is undermining Liberia’s conservation strategy, particularly its commitment to protect 30 percent of its land by 2030 and reduce deforestation under international climate agreements.
Call for Urgent Reforms
While acknowledging the sector’s potential to drive economic growth, the report stresses that urgent reforms are needed to ensure Liberia benefits from its natural resources.
Key recommendations
The report calls for strengthening transparency and reconciling trade and revenue data, closing gaps in tax collection and revenue reporting, enforcing legal obligations to host communities, increasing funding for environmental monitoring and enforcement, developing a national land-use plan to balance mining, conservation, and community interests.
“Liberia’s mining sector has the potential to drive growth,” the report concludes, “but only if governance keeps pace with extraction,” the report noted. With millions of dollars at stake and environmental risks mounting, the findings add pressure on the government to act decisively to protect both its economy and its natural heritage.
