Mining Sector
The mining sector in Liberia is characterized by the wide variety of mineral resources, especially valuable metals such as gold and diamonds as well as industrial minerals like iron ore. These are mainly found in ancient greenstone belts in several regions of the country. Traces of other substances like platinum, uranium and niobium, and base metals such as nickel, cobalt, tin, lead and manganese were also found. Key industrial rocks and minerals mainly include sulphur, phosphates, clays (kyanite), granite, silica sand, heavy mineral sands (rutile & ilmenite) and diabase/dolerite. These minerals exist in both smaller and large quantities across Liberia.
The mineral industry has always historically been a key pillar of the country’s economic development. Hitherto the 1990s, the minerals sector, particularly iron ore, contributed to over 60% of export earnings and somewhat 25% of GDP[1]. Iron ore alone contributed more than 20% of the gross national product and provided over 50,000 workplaces, employing nearby 15% of the country’s total workforce. Gold and diamonds, in contrast, did not provide a significant contribution to the Liberian economy as they were primarily based on artisanal, small-scale extraction methods and tools.
During the civil war that lasted between 1989 to 2003, the mineral sector contribution saw a sharp drop and investments in the sector were curbed. Export of diamonds, a significant mineral sector export, was banned. Large scale mines suspended operations, and some even closed due to civil unrest. As a result, revenues and jobs collapsed, infrastructure was worn out and environmental impacts and overall poverty worsened.
Following the stabilization of the political environment in the country since 2005, investments in the sector resumed which led to increased exploration and development of mines, especially in gold and diamond mines. The Government of Liberia set a strategy for the mineral sector that aims to institute appropriate policies and fiscal framework to attract investments to enhance its contribution to government revenues. Reforms instituted in the sector especially between 2006 and 2010 triggered significant interest and investment in the sector. The development and amendment of instruments like the Mineral Policy of Liberia (2010), the Mineral Exploration Regulations (2010), the Amended and Restated Public Procurement and Concessions Act (2010) and other broader reform efforts laid the basis for the revival and the effective and transparent management of the sector. These efforts led to improved governance of the sector and saw the granting of major mining concessions to companies like Arcelor Mittal Liberia, Ltd., BHP Billiton (Liberia) Inc., China-Union Investment (Liberia) Bong Mines Co., Ltd., Putu Iron Ore Mining, Inc., and Elenilto Minerals & Mining LLC (Western Cluster Limited, Sesa Gao Limited, Bloom Fountain Limited).[1]
This evolution was refrained in 2014 by the expansion of Ebola virus crisis that paralyzed the country’s economy, combined with the worldwide fall of commodity prices in the international market. As a result, industrial mining remained limited and, in the absence of a formalized artisanal mining sector and the lack of foreign investment in the sector, mining was not producing the concrete socio-economic benefits envisioned by the government.
The government therefore acknowledges the weaknesses in the legal and regulatory framework governing the extractive sector and has set actions to strengthen it in order to increase transparency and cater to the welfare of small-scale miners while safeguarding the environment.
Liberia is located in the center of the Leo-Man Shield, a craton in the southeast portion of the West African craton, across the boundary between the Archaean and Paleoproterozoic domains. These geological characteristics are similar to those of border countries that produce significant levels of gold, iron ore, diamonds, and other precious metals. The Archaean rocks are known for their iron ore deposits within the greenstone belts, with its largest deposits in south-east Guinea. The greenstone belts also host significant gold minerals with majority of them located in in Ghana, Mali, Senegal, Niger, Burkina Faso and Cote d’Ivoire.[1]
Liberia’s geological similarities with its neighbouring countries in the region point to a higher potential of minerals. It is understood that, despite these potentials, Liberia is still an underexplored country. Besides the traditional minerals (iron ore, gold, and diamonds), there is significant potential for other minerals including barite, heavy mineral beach sands (rutile, zircon, ilmenite, and monazite), phosphate, clays, silica sand, copper, zinc, and chromite
The mineral exploration landscape is equally progressing with advanced stage exploration ongoing for both gold and iron ore. Hummingbird Resources (Liberia) Incorporated holds a Mineral Development Agreement (MDA) with the Government of Liberia to further explore and develop primary gold deposits within its Dugbe MDA area in Southeastern Liberia. Bea Mountain Mining Corporation is conducting near mine exploration within its MDA area in Western Liberia, while also exploring for gold in other parts of the country to increase its gold resources. Zodiac Gold Inc. continues to advance its exploration project over the highly prospective Todi Shear Zone near Monrovia, where drilling has revealed high grade mineralized zones. Zodiac Gold is confident that its Todi Project holds strong potential for the discovery of +1 Moz gold deposits and significant iron ore deposits. West Crest Liberia Ltd. has completed aeromagnetic survey and two drilling campaigns over its Gibi Iron Ore project in Central Liberia. Greenfields Venture Inc. has recently acquired exploration rights over the Mofe Creek Iron Ore Project in western Liberia, with plans to further develop the project. Cavalla Resources Inc. continues to explore the Goe Fantro iron ore deposits in Grand Bassa County. In addition to these exploration initiatives, there are a number of other ongoing exploration projects by different companies around the country.[1]
According to various media sources, studies funded by China over the last five decades revealed the presence of important Uranium, Lithium, Cobalt, Manganese and neodymium deposits in Liberia, according to a declaration of the President in January 2025. It is believed that the GoL is currently undergoing discussions with multinational companies as well as local investors to attract around US$ 3 bn of investment to mine the discovered deposits as well as related investments in infrastructure, renewable energy and technology.
Artisanal and Small-Scale Mining (ASM)
In the absence of a clear definition in the Mineral and Mining Act (2000), Artisanal and small-scale mining (ASM) is described as largely informal economic sector that involves the use of manual labor and rather simple methods of mining and processing using traditional equipment simple machinery. The aforementioned Law only referred to ASM as “small-scale mining” until 2004 when “artisanal” mining was mentioned in the amendment of the Law.
Overview of the ASM sector in Liberia and its contribution to the Economy[1]
The ASM sector in Liberia is largely informal and not well regulated. It is an important sector economically, with activities widespread across the country and an estimated 100,000 artisanal miners especially in rural communities that are interested mainly in the extraction of gold and diamonds, which represents 2% of the Liberian population. It is also believed that almost 1.575 million people are indirectly involved in the ASM activity, 10 to 20% of them are women.
Diamond and Gold ASM contribute to the economy through royalties and taxes paid by licensed dealers. However, while artisanal gold mining is largely informal and unregulated, a significant portion of revenues disappear into informal channels. As a result, governments are deprived of substantial revenues, which could be captured if effective tax regimes were put in place as part of a formalized system.
Given the numerous challenges they face, many artisanal miners are operating at varying degrees of legality, through the payment of informal taxes, based on informal agreements with local government officials. In fact, a significant proportion of unlicensed artisanal miners have, at some point in time, entered into such informal agreements with local mining officials to benefit from tacit permission to start or resume their activities. Such practices offer an alternative to the upfront payment of a license fee and avoid significant losses to the miners in case of unprofitable applications.
The Government seeks to improve the enforcement of regulation on artisanal, small-scale and large-scale mining activities through rigorous monitoring. In fact, concessional agreements will be subject to review for compliance with laws and regulations, and particularly those that benefit the local communities. The Liberian government will encourage corporate social investment with strong local content development framework and strategy for local benefits. A major focus is being placed on strengthening regulatory mechanisms to enhance transparency and to improve the welfare of small-scale miners while safeguarding the environment.
The MME notes that to ensure effectiveness and inclusiveness of formalization, the process requires buy-in, active participation, inclusion and commitment from a range of stakeholders from the government, civil society and traditional community leaders as well as those engage in the formalization process. With increased formal taxation, the government needs to demonstrate reinvestment and support for miners who formalize their operations through technical assistance and access to credit or equipment. Additionally, cooperative structures were being captured by dealers and Monrovia-based businessmen “to perpetuate existing forms of resource capture and revenue sharing arrangements”.
Liberia's New Pro-Poor Agenda for Prosperity and Development (2018-2023) sets out a new vision for improving mining governance and enforcement of regulations on artisanal and small-scale mining operations throughout the country to develop the sector and therefore increase its productivity. As a result, these convergent policy objectives have led to the government and its development partners strengthening the regulatory frameworks that govern ASM to bolster financial inclusion. This financial inclusion framework for ASM in Liberia was commissioned and developed following a review and analysis of Liberia’s financial ecosystems and the country’s ASM value chain. It is underpinned by a theory of change which considers all facets of ASM in Liberia to advance financial inclusion through a holistic, integrated, multi-sectoral formalization approach. The framework is also guided by six interconnected principles: access, usage, quality, social, education and infrastructure, which work in unison to achieve the goal of financial inclusion.[1]
In addition, the GoL is one of the political sponsors, alongside with Cote d’Ivoire, Guinea and Liberia, of the GIZ program “Regional Resource Governance in West Africa” that aims to provide support for the partner countries to change the political, institutional and legal framework conditions to formalize the ASM sector. It works together with Mano River Union government institutions, communities, civil society organizations, and the private sector.