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CHAPTER 8 IRON ORE:
THE LIBERIAN AMERICAN-SWEDISH MINERALS COMPANY
THE DEUTSCH-LIBERIAN MINING COMPANY
THE LIBERIAN IRON AND STEEL COMPANY
THE LAMCO JOINT VENTURE; Historical Background
The 1953 concession agreement with Lee Edgar Detwiler
A U.S. sponsored programme of airborne photogrammetric and
magnetometer surveys which had been carried out in 1952 and 1953,
covering approximately 87 per cent of the land area, had revealed
substantial iron ore deposits in the Putu Range, about 70 miles
from the coast in the eastern part of Liberia (1).
On September 9, 1953 the Secretary of the Treasury, William E.
Dennis, (on behalf of the Liberian Government) and Lee Edgar
Detwiler, President of the "United African American Corporation"
(U.A.A.C.), a U.S. corporation, signed a mining concession
agreement. This act marked the official start of the largest
iron ore mining venture in Africa though nobody could have
imagined that at that time. The agreement, which was approved by
the National Legislature on November 18 of the same year, granted
a 70-year concession during which period the concessionaire would
have the right to explore, mine, process, manufacture and
undertake other activities necessary to develop minerals (such as
iron ore, manganese, bauxite, and including oil and by products)
in an area in the country not clearly defined but which was not
to exceed 500 square miles (nearly 320,000 acres).
The inclusion of iron ore deposits of the Putu Range and two
manganese deposits near the border with the then French colony of
Ivory Coast were specifically mentioned.
In consideration of granting the concession and making available
its knowledge of mineral deposits in the country, Detwiler gave
the Government a 50? interest in the mining company (the "Liberian
American Development Company"), which was to be formed. This
50? interest would entitle it to 50? of the company's annual net
earnings, as defined by the agreement. This profit-sharing arrangement
exempted the concessionaire of any and all taxes or
other charges - existing and future - with the exception of roy-.
alty and rental payments. The assigned company, the "Liberian
American Development Company" (L.A.D.C), would pay a royalty of
1 ? of the value of the exported minerals (alongside port of shipment).
This payment would cease as soon as profit-sharing by the
Government were to have started. It was further agreed that a
rental of 6 cents per acre per year would be paid for all public
lands that would be used (except when used for the construction
and operation of railroads, roads, ports and airports). It is
worthy of note that not a^ single provision had been included
with respect to the use of privately owned lands or the protection
of the environment of the people living in the "Hinterland"
(2),