Monrovia –Two members of the Liberian Senate have proposed a bill seeking to establish a national gold refinery in Liberia as part of measures to reform the minerals sector and rebuild the country.
By Obediah Johnson, obediah.johnson@frontpageafricaonline.com
The bill entitled: Gold Sector Reform Amendment Act of 2026 was introduced by Senators Francis Dopoh and Johnny Kpehe of River Gee and Bong Counties respectively.
In a communication dated April 16 and addressed to the Plenary of the Senate, Senators Dopoh and Kpehe pointed out that the bill seeks to amend the Mining and Minerals Law of 2000 to address critical gaps in the regulation, formalization and marketing of Liberia’s gold resources.
They observed that over 70% of the gold sector remains informal, resulting in significant revenue leakage, pervasive smuggling and limited benefit to the rural communities where these resources are extracted.
They stated that the proposed Act introduces a robust governance framework designed to formalize Artisanal and Small-Scale Mining (ASM) by mandating that all artisanal miners organize into cooperatives within 36 months after the passage of the law.
According to them, this is intended to eliminate “elite capture” and ensure that mineral rights benefit genuine Liberian entrepreneurs
They emphasized that the proposed Act would also promote local value addition by establishing a 5-year transitional period for mandatory local gold refining, ensuring Liberia moves away from the export of raw minerals toward high-value beneficiation.
They noted that the proposed legislation would enhance transparency and traceability through the establishment of Licensed Gold Trading Centers (LGTCs) and a national digital gold registry, to ensure that the State is equipped to track gold from the pit to the point of export, significantly to curb illicit trade.
Senators Dopoh and Kpehe maintained that the State would establish a National Gold Company of Liberia (NGCL) to manage state equity and provide a transparent vehicle for government participation in the gold value chain.
They said the proposed Act would safeguard the environment and communities by providing a clear 3-year timeline for the phase-out of toxic mercury and mandates standardized Community Development Agreements (CDAs) to ensure mining wealth is shared with the people.
“This Bill is policy-ambitious and aims to transition our mineral sector from a mere vision of reform into an enforceable governance system. We believe that its passage will strengthen our foreign exchange reserves, create thousands of jobs in refining and trading and secure the national wealth for future generations.”
In an interview with legislative reporters at the Capitol Building, Senator Dopoh attributed the payment of low fixed royalties to Liberia by some mining companies to the lack of reform in the sector.
He observed that the 2000 minerals law of Liberia does not clearly specify how the nation can invest and manage the activities of gold.
He said latest pronouncement made by the Central Bank of Liberia(CBL) that it on the verge of moving towards the purchase of gold for reservation is welcoming, but such plan should not be carried out in an informal or unregulated sector.
“It is a normal practice in Liberia that most of the activities in the mining sector are informal and about 70% of our gold activity comes from the informal mining sector. So, we thought it’s important for us to legislate something that will be cleared. We are proposing in this bill that our artisanal mining sector be organized into cooperative,” he stated.
Senator Dopoh pointed out that bill is also intended to prevent the exportation of unrefined gold from Liberia.
He said Liberia and its citizens would benefit more if gold is refined in Liberia. According to him, the value of royalties would increase and attract the establishment of factories to provide employment opportunities for Liberians.
“We want to make sure that we have a gold market where people can go to a specific area in the counties to buy gold and not just anywhere. The law is actually glare for us to see how we can use gold to build Liberia,” he added.
Senator Dopoh emphasized that the proposed legislation would discourage the exportation of unfinished natural resources from Liberia and prevent the use of harmful substances for mining activities.
The bill seeks to establish the National Gold Company of Liberia (NGCL) to purchase, refine and export gold.
The NGCL Board would include independent experts and civil society. It calls for State equity in large-scale gold mining to be no less than 10%, negotiable up to 20%.
It mandates the payment of royalties in various categories including Artisanal (3%), Small-scale (5%), Large-scale (6–10%). On tax Integrity, the proposed Act maintains that transfer pricing rules and windfall tax mechanisms are mandatory.
It calls for the establishment of a Mining Dispute Tribunal to adjudicate licensing and community conflicts.
It maintains that operators of gold mining licenses must enter standardized Community Development Agreements (CDAs) with minimum funding thresholds.
The proposed Act recommends imprisonment, fines, and asset seizure for the smuggling of gold from Liberia.
It adds that officials must also file asset declarations. The bill also calls for the protection of whistleblowers.
Meanwhile, the proposed legislation has been forwarded to the Senate Joint Committee on Lands, Mines and Energy and Judiciary for scrutiny.
