The Government of Liberia has successfully defended against Solway Mining's claim to the disputed Blei and Detton iron ore area in Nimba County. An international arbitration tribunal ruled that Solway had no right to compensation for the exploration licence that was later awarded to ArcelorMittal. The award, dated September 23, 2026, was handed down under the Permanent Court of Arbitration in PCA Case No. 2024-22.
Solway Mining had claimed over $200 million in compensation, but the tribunal ordered Liberia to pay only $314,619.47 for the seizure of Solway's physical assets. The tribunal found that Liberia had breached its own Investment Act when it seized Solway's assets, but dismissed all other claims, including Solway's claim to the licence itself.
The arbitration tribunal's ruling was not unanimous, with one arbitrator, Professor John Y. Gotanda, dissenting from the majority decision. He argued that Liberia's own paperwork, including a June 2023 Deed of Settlement with ArcelorMittal and a July 2023 Release and Settlement Agreement with Solway, showed that Solway had real and valuable rights that were formally cancelled before being handed to ArcelorMittal.
The dispute between Solway Mining and ArcelorMittal began in 2019, when Solway was awarded an exploration licence for Mt. Detton and Mt. Blei. ArcelorMittal protested, claiming the land was already under its concession. The standoff reached the Executive Mansion, with then-President George Weah urging both companies to resolve their differences.
In mid-2023, the government terminated Solway's licence and awarded it to ArcelorMittal. The move sparked anger in Nimba, with traditional leaders taking control of the area. The arbitration ruling clears the way for ArcelorMittal to expand its operations in northern Nimba without the threat of a court challenge.
ArcelorMittal's hold on the Blei and Detton area was secured in September 2023, and the company has since ramped up shipments from the area. The company paid $200 million to the government for an extension of its mining rights to 2050, with an option to renew for another 25 years.
The ruling is seen as a significant victory for Liberia, which has been courting new mining investment. The government has said that it expects iron ore production to increase to around 30 million tons this year, up from 10 million last year. Settling the Solway dispute removes a major obstacle to this growth and clears the way for ArcelorMittal to increase its output and investment in the country.
Key points
- The arbitration tribunal's ruling limits Solway Mining's compensation to $314,619.47 for the seizure of its physical assets.
- The ruling secures ArcelorMittal's hold on the Blei and Detton iron ore area in Nimba County.
- The dispute's resolution clears the way for ArcelorMittal to expand its operations in northern Nimba and increase its investment in Liberia.
