The_Open_Door_deel1

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Gold mining concession policy and practices during the
Tolbert Administration.
In the 1970's soaring gold prices attracted a number of
prospectors and investors to Liberia. The International Mining
Company, a U.S. company with gold interests in South America,
showed interest in the possibilities of gold production in
Liberia through the "African Resources & Mining Company, Inc.".
This company was granted permission to prospect for gold
within the five counties of Grand Cape Mount, Lofa, Sinoe,
Grand Gedeh, and Maryland for a one-year preliminary period.
Two reconnaissance surveys which were carried out in the two
most western counties were promising enough to warrant
continuation and after having gone into a partnership with the
"African Mining Partners" a gold mining concession agreement
was signed with the Government on August 1, 1973, for which
purpose (and others in the future) the services of the Liberian
lawyer William Tubman Jr., son of the former President and
son-in-law of President William Tolbert, had been hired.
At first the company concentrated on possible gold deposits in
Grand Cape Mount County, notably in the Butter Hill, Weaju,
Gondoja, and Jenne Wonde areas, but already in 1974 it
delineated areas in Sinoe, Grand Gedeh, and Lofa Counties (43).
The following year practically all exploration activities were
transferred to the Bua area in Maryland County and the Zai
town and Gozo areas near Zwedru in Grand Gedeh County (where
placer gold had been mined since the mid-1940 1 s (44)). However,
results of the exploration activities - though in several
cases positive - did not justify large scale exploitation and
the "African Mining Partners" slowly withdrew from the venture
which it had expected to be more profitable.
In the first half of 1976, the company was practically defunct
yet on June 15, 1976 - before the expiration of the exploration
period of the concession agreement (see Annex 9) - it was set
a dead-line by the Government: either to commence new activities
before August 1, or to have the agreement cancelled. The company
failed to comply with this ultimatum and the concession
agreement was abrogated on August 23, 1976. Subsequently the
Government of Liberia in vain demanded payment of an amount of
$ 299,418 as liquidated damages representing the amount not
expended in accordance with Section 3.3(b) of the Concession
Agreement (45).
The "Azuza Mining Corporation", a company backed by investors
from the U.S.A., commenced prospecting for gold in July 1975
though its had at that time no agreement with the Government. In
late 1975 it officially asked permission to explore for gold and
associated minerals but as a large portion of the area which it
applied for fell within the concession limits of the "African
Mining Partners" (notably an area near Zwedru in Grand Gedeh
County) the request was not granted. In 1976 when Grand Gedeh
County had lost its attractiveness for the "African Mining
Partners", Azuza wanted to start the exploitation of the gold
deposits of the Dugby Creek and elsewhere in the county (in the