Wedoany.com Report-Dec.19, Liberia's Senate ratified an agreement on Thursday, enabling Ivanhoe Atlantic Inc. to utilize railway infrastructure for transporting iron ore from the Kon Kweni deposit in Guinea to the port of Buchanan.

The ratification follows approval by the House of Representatives the previous week, completing legislative endorsement of the deal negotiated earlier this year after extended discussions.

The arrangement grants access to a 243-kilometer railway line, providing an efficient export route for the project. ArcelorMittal SA currently manages the railway under rights extending to 2030. An executive order issued by President Joseph Boakai in October supports the introduction of independent operation and multi-user access to rail corridors.

Ivanhoe Atlantic plans to commence construction at Kon Kweni in early 2026, with initial shipments targeted for the subsequent year and starting production capacity reaching up to 5 million tons annually of high-grade iron ore. A later expansion phase aims for 30 million tons per year, involving approximately $850 million in investments to enhance export facilities.

Over the 25-year period, the company anticipates contributing around $1.4 billion in rail usage fees and $600 million in additional taxes and charges to Liberia.

"Having in place a confirmed logistics route with a clear technical and financial operating framework brings Kon Kweni a step closer to construction," Ivanhoe Atlantic said in a statement after the Senate's decision. "This opens up a valuable logistics chain to other users in Liberia and neighboring countries, including US aligned companies looking to expand into the region," it said.

ArcelorMittal, which is expanding its own Liberian iron ore operations to 20 million tons annually, has invested substantially in railway rehabilitation. The company supports shared usage provided contributions are made toward capacity enhancements.

Ivanhoe Atlantic's primary stakeholder is I-Pulse Inc., founded and chaired by Robert Friedland. The mining executive also serves as co-chairman of Ivanhoe Mines Ltd., which collaborates on a major copper project in the Democratic Republic of Congo.

The company is advancing preparations for a potential initial public offering in Australia to fund Kon Kweni development.

Meanwhile, Guinea continues to develop its iron ore sector, with the Simandou project having commenced exports this month and progressing toward an annual capacity of 120 million tons.