Steel manufacturer ArcelorMittal S.A. (NYSE:MT) (Euronext:MT) (BME:MTS) and the Government of Liberia have signed an amendment to their existing Mineral Development Agreement, extending its term to 2050 with an option to renew for an additional 25 years following legislative ratification, ArcelorMittal announced on Friday.

The revised agreement reinforces the company's long-term mining expansion plans and commitment to Liberia while enabling the Tokadeh-Buchanan rail corridor to be accessible to multiple users.

The agreement coincides with the inauguration of ArcelorMittal's iron ore concentration facility at Tokadeh in Nimba County, described as one of Africa's largest and most technologically advanced beneficiation plants. The concentrator is the core of a USD1.8bn expansion project that raises the company's total investment in Liberia to USD3.5bn, including rail upgrades, port improvements in Buchanan with an additional berth, and construction of two power plants.

This expansion project, which is nearing completion, will increase iron ore shipments from approximately 5 million tonnes per annum to 20 million tonnes in 2026, while improving ore grade and value. Feasibility studies are underway for further growth.

Additionally, the agreement outlines a multi-user rail framework requiring third parties to fund capacity expansions, while reserving up to 30 million tonnes of annual rail capacity for ArcelorMittal if additional production is approved.

Under the terms of the agreement, ArcelorMittal will pay USD200m to the Liberian government for extended mining rights and reserved railroad access.