The_Open_Door_deel1

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to concentrate on the new find. By the end of 1956 total
exploration expenses already exceeded the $ 1 million mark
($ 400,000.00 had been spent in connection with the Putu Range).
A year later exploration expenses amounted to $ 4 million, which
amount includes the costs of exploration of the Bassa Hills which
had started at the beginning of 1957,
Meanwhile the Syndicate was looking anxiously for co-financers of
the project which became increasingly ambitious. Test borings and
(surface and underground) excavations of the Main Ore body in the
Nimba Mountains had by early 1958 indicated a quantity of
200,000,000 tons of ore with a Fe-content of 66 per cent and of
direct shipping quality as proven ore reserves. In an adjacent
ridge an additional 35,000,000 tons of proven ore reserves had
been located. A major advantage was the location of the ore
reserves which were at the surface in a relatively concentrated
area of the Nimba Mountains, making mining by open pit methods
possible. However it's location in the far interior of Liberia,
combined with the absence of roads and railroads in the country,
necessitated the construction of a 165 miles long railroad to
the coast where the ore would be shipped to overseas markets.
Moreover, at that time there was no harbour on this part of the
coast and therefore a port had to be constructed by the mining
enterprise.
In the first half of 1958 the giant of the U.S. Steel Industry,
the Bethlehem Steel Corporation, was approached to discuss a
possible participation in the Project and investigations were
also made as to the possibility of interest in West Germany for
buying iron ore from LAMCO, On June 26, 1958 a new agreement,
superseding all previous agreements was entered into between
I.A.A.C. and the Swedish Nimba Syndicate, the new name for the
same group of six Swedish companies. I.A.A.C.'s inability to keep
pace with the growing need for capital to finance the project was
reflected by the change in LAMCO's ownership structure. The
previous 50 - 50 position between I.A.A.C. and the Swedish
Syndicate in respect of the ownership of LAMCO's "B" shares
changed into a 40 - 60 position in favour of the Syndicate, and
the mining company's name was altered to "Liberian American-
Swedish Minerals Company" (LAMCO). All the "B" shares were
transferred to a newly created company, registered in Canada,
the Liberian Iron Ore Ltd. (L.I.O.). The reason for this
preference for Canada was based mainly on the assumption that
insurance companies (which then were expected to provide the
bulk of the money needed to finance the project) might insist
on or prefer a United States or Canadian corporation as borrower
of their funds (9). Legal registration of both L.1.0. and
the Swedish Syndicate (under Canadian and Swedish laws respectively)
subsequently took place in September 1958.
The next step towards realization of the (investment) plans was
made in October 1958 when a Letter Agreement was signed with
Bethlehem Steel. An attempt to secure funds from the Export-
Import Bank, however, failed in March 1959. By the end of 1958