High Power Exploration’s proposed $5 billion railway project in Liberia faces significant skepticism due to Guinea’s longstanding policy against exporting iron ore through its territory. Critics highlight the financial impracticality of the project, especially in light of the new Trans-Guinean Railway, and demand concrete evidence of Guinea’s approval.
High Power Exploration (HPX) is encountering significant skepticism regarding its infrastructure project in Liberia to facilitate iron ore export from Guinea’s Nimba deposit. Critics, including industry analysts and policymakers, question the viability of HPX’s $5 billion proposal, asserting it contradicts Guinea’s long-standing policy of resource sovereignty and the development of its own rail project. The skepticism has intensified following recent geopolitical shifts in the region.
For over sixty years, Guinea has resisted allowing iron ore exports through Liberia, insisting that mining firms invest in local infrastructure for resource transportation. This policy, grounded in economic nationalism, was momentarily overlooked under former President Alpha Condé, who signed an agreement allowing limited use of Liberian export routes. However, following a coup in 2021, Guinea’s new junta has reaffirmed its traditional priorities regarding resource management.
In 2023, a significant agreement was made between Guinea’s government and major firms to construct the Trans-Guinean Railway, linking the country’s vast iron ore reserves directly to a new deepwater port. With the railway reportedly over 80% complete, this infrastructure project is expected to be finished by late 2025, providing a more cost-effective alternative for transporting iron ore than HPX’s proposed Liberian rail route.
HPX has claimed it would transport 25 million tonnes of Guinean ore through Liberia, presenting assurances from Guinean authorities. However, when pressed for documentation of this approval, HPX has failed to provide any evidence, leading to growing accusations of dishonesty. Activists highlight the absence of a valid agreement with the new Guinean leadership, suggesting HPX may be misleading stakeholders.
The strategy shift by HPX has drawn attention in Washington, with U.S. officials expressing skepticism about Guinea permitting a rival project that could undermine its substantial investment in railway infrastructure. The growing doubt regarding HPX’s venture also places pressure on Liberian President Joseph Boakai’s administration to seek concrete proof of Guinea’s backing before committing to the project.
The article addresses the increasing doubts surrounding HPX’s efforts to build a railway in Liberia for iron ore export from Guinea. The skepticism focuses on the conflict with Guinea’s historical policy of resource sovereignty and its recent infrastructure developments, particularly the Trans-Guinean Railway. The long-standing resistance by Guinea against utilizing Liberian export routes highlights a nationalistic approach to resource management, influencing current discussions about HPX’s intentions and plans in the region.
In summary, High Power Exploration is facing mounting skepticism about its proposed railway project in Liberia for transporting iron ore from Guinea. Critics underscore the project’s incongruity with Guinea’s policies and recent infrastructure advancements. Without clear evidence of Guinea’s support, the initiative may be seen as an imprudent gamble that could burden Liberia with unnecessary debt, raising calls for greater transparency and adherence to the new realities following Guinea’s political shift.
Original Source: frontpageafricaonline.com
