Dressed in his traditional black suit, American-Canadian billionaire Robert Friedland stands proudly hand-in-hand with Liberian President Joseph Boakai and South African businessman Robert Gumede, the well-connected executive chairman of the Guma Africa group.

They are in the reception room of the Liberian presidential palace; the billionaire’s Bombardier Global 5000 had landed at Monrovia-Roberts International Airport that morning of 11 February.

Friedland only had one thing on his mind on his arrival in Liberia: breaking the deadlock over Mount Nimba. To that end, he has high hopes for the Boakai administration.

Through his company High Power Exploration (HPX), set up in 2019 and registered in Delaware, US, the man known as the “mining magician in risky terrain” has set himself the challenge of conquering West African iron ore, a field in which he has had little influence until now.

800m tonnes of high-grade iron ore

At an altitude of more than 1,700m, Mount Nimba, a lush reserve that serves as a natural border between Guinea, Liberia and Côte d’Ivoire, contains a known resource of 800m tonnes of high-grade iron ore. In its 2023 forecast, HPX expects to mine nearly 450m tonnes over 20 years, or around 20m tonnes a year.

Despite the deposit’s strategic location and significant economic potential, outgoing president George Weah repeatedly opposed Friedland’s use of the corridor operated by ArcelorMittal Liberia to transport Guinean iron. The steel giant, which signed an unprecedented contract with the government giving it exclusive use of the railway line to the port of Buchanan, is not accustomed to sharing – least of all with a serious competitor.

Faced with this block, Friedland, described by his entourage as “a determined businessman who is not easily intimidated”, decided at the beginning of February to bypass the existing rail system by embarking on a project to build his own railway.

A $5bn rail corridor

Is it media hype or real commitment? Following his meeting with Boakai, the mining magnate secured the signature of a memorandum of understanding between the Liberian state, his company HPX and Guma Africa to develop the Liberty Corridor.

Estimated to cost $5bn, this project involves the construction of a heavy-haul railway line from Mount Nimba mine in Guinea to the new deep-water port of Didia in Liberia.

Added to this is the extension of Côte d’Ivoire’s existing hydroelectric network to the Nimba district of Liberia and Guinea, and the upgrade of the road network in the area. In addition, a committee comprising members of Guma Africa, HPX and the Liberian government has been set up to steer the negotiations. Currently being studied by President Boakai’s cabinet, this construction project should soon be submitted to parliament for a vote.

“There was a real issue surrounding the use of the corridor,” explains a mining sector executive. “Arcelor wanted to keep its railway monopoly. It’s difficult in such a competitive market to leave room for competitors. That’s why Robert Friedland wants the support of the Boakai administration to open up another one.”

New mines minister is ‘good news’

On the Guinean side, the noose also seems to be loosening around HPX. After Friedland placed Bronwyn Barnes at the head of the Société des Mines de Fer de Guinée (SMFG, HPX’s Guinean subsidiary) in November 2022, taking over from Mamady Youla, the teams have been restructured. The appointment on 13 March of the new minister of mines, Bouna Sylla, seems to be a step in the right direction.

“This is good news for HPX. Bouna worked on the initial agreement for the Nimba project and on the transfer that enabled HPX to replace BHP. He knows the project inside out, as he was also a member of the Guinean joint committee responsible for evaluating the infrastructure,” says a Conde-era dignitary. Bronwyn Barnes is due to travel to Conakry to meet the new minister and the authorities.

As proof that things are speeding up, HPX is currently in advanced discussions with several local operators to handle the logistics and civil engineering work on the Guinean side of the railway. Friedland, who wants to get his iron on the rails quickly, is hoping to sign an agreement with President Boakai that would allow the iron to be evacuated via Liberia, before closing the deal in Guinea.

Doumbouya threatens to withdraw licence

Although Friedland has stepped up financial efforts to advance the Nimba project, 2022 proved to be a complex year for the group. On the Guinean side, the junta led by General Mamadi Doumbouya, who overthrew President Alpha Condé in 2021, was resolute towards mining companies and repeatedly opposed the group.

“The minister of mines, Moussa Magassouba, didn’t respond to our requests. So we couldn’t make any progress on any of the issues,” explains an HPX executive.

On the Liberian side, President Weah had not kept his promises to liberalise the corridor, and had manoeuvred behind the scenes with metallurgy giant ArcelorMittal to keep Friedland out of the corridor.

These obstructions, on both sides of the Mount Nimba border, have annoyed the tycoon. Consequently, Friedland, who used to travel to the countries where he operated mainly to sign contracts and resolve issues, has decided to intensify the frequency of his trips to Guinea and Liberia, accompanied by powerful lobbyists and advisers. But his comings and goings in Conakry, where he met Doumbouya and his advisers, have proved insufficient.

On 14 October 2022, his group received a formal notice from the Guinean minister of mines, threatening to withdraw HPX’s licence if it did not “remedy the breaches” within 45 days. This confidential letter criticises HPX for not having fulfilled “the obligations contained in the provisions of article 3 and 4”. These correspond to the anticipated first production of 5m tonnes of iron per year and the completion of a bankable feasibility study within 12 and 24 months from 5 September 2019.

This standoff with the authorities has led to a deep crisis within the group. Tired of the repeated deadlock, managing director Mamady Youla handed in his letter of resignation. He was soon joined by board chairman Guy de Selliers.

Although de Selliers officially left for health reasons, he was the subject of fierce internal protests. Friedland then put the Nimba project on care and maintenance in Guinea. “Activities were on hold; we were no longer spending money. All the development projects in progress were put on hold and the staff was reduced”, confided one of the group’s employees.

Liberian offensive with Solway

Not one to give up, the businessman stepped up his efforts in Monrovia, with the support of the New York law firm Padmore Skolnik & Shakarcy, to obtain the use of the Liberian railway from President George Weah. Friedland’s critics in Liberia accuse him of using the country to get his iron out, without actually investing in it.

“Friedland’s opponents in Liberia and supporters of ArcelorMittal said some people wanted to roll out the carpet for the American-Canadian billionaire while he was not exploiting any resources in the country and just needed to use Liberia for his resources in Guinea,” explains a source close to Friedland.

“To show his interest in the development of Liberia’s mining resources, Friedland started to look at whether there were any exploitable resources in which he could invest in the short term while he developed the Nimba project.”

So the tactician began to take a closer look at the activities of Solway Mining, a Swiss group led by the Estonian Dan Bronstein. Discussions between the two mining companies began in 2022. Guy de Selliers reportedly made several trips to Switzerland to hold talks with Bronstein.

Weah administration hold-up

But this collaboration was soon short-circuited by Weah and his administration. Just as the presidential campaign – which didn’t guarantee victory for the outgoing president – was drawing to a close, the head of state agreed to transfer the mining licences to Friedland’s competitor, ArcelorMittal.

This financial movement, closely monitored by Washington and considered suspicious, led to a series of sanctions by the Office of Foreign Asset Control (OFAC) against a handful of Weah loyalists, such as Nathaniel McGill, the man in charge of presidential affairs, and Gesler E. Murray, the minister of mines.

Solway, which had invested more than $15m in its Yéképa iron ore project, insists that it was not informed of this move and has decided to take the Liberian state to arbitration in London. While Friedland saw the deal as a fierce move by the Weah administration, the tycoon is doing everything in his power to curry favour with President Boakai. In this respect, the signing of the memorandum of understanding on 11 February represents a first victory.