Liberia+Strategic+Minerals

=China Union Company Likely To Maintain Current Investments In Liberian Mining Projects Over The Next Five Years=

Executive Summary:
It is likely that China Union Company will maintain their current investments and projects in regards to strategic minerals within Liberia. China is one of Liberia's biggest export partners with 24.2 percent of Liberia's exports going to China. In 2008, China Union Company made a USD 2.6 billion investment into Liberia, focusing first on the Bong iron mines. China has also showed interest in recently in the Liberian Wologisi iron mines. Despite these large investments, tensions are building between the Chinese companies and Liberian workers. Poor pay, poor conditions, and unmet promises are cited as the reasons for the tension.

Discussion:
China is one of Liberia's biggest export partners with 24.2 percent of Liberia's exports going to China. China's main focus in Liberia is iron ore. Liberia is estimated to hold approximately 800 million tons of iron ore at a grade of between 35 and 65 percent. Liberia also possesses other minerals sought after by China such as copper, gold, bauxite, and uranium. Liberia's mineral resources have been relatively unexploited, allowing for large amounts of growth available in its mining industry.

China Union Company has made large investments into Liberian mining operations. In 2008, a USD 2.6 billion investment was made by the company into Liberian mining operations in Bong. The Bong Mine is estimated to hold deposits of around 1.31 billion tons of iron ore. Along with the building of mining infrastructure, China Union agreed to provide social development projects such as scholarships and schools in the region. They have built a refining factory near the Bong iron mines as well as created jobs for workers in the area.

In 2013, Zhao Jianhua, the Chinese Ambassador to Liberia, publicly stated that the Chinese government has interest in the Wologisi iron mines in the Lofa region of Liberia. While there was no talks of which specific Chinese company would be the one to develop the mines if China was granted the rights, it was stated that whichever company is responsible would carry out social development projects, much like the ones promised by China Union. No further information was given about this possible project, and currently, China is not in any sort of talks with the Liberian government concerning the project[|.]

Despite these large investments, there have been building tensions between the Liberian workers and Chinese companies. In September of 2013, Liberian workers protested against the poor conditions of the Bong mines. They cited abuses such as insufficient salary, lack of medical facilities, lack of pay raises, and corruption in the management. The protests were eventually calmed, but there are still many critics of China Union throughout Liberia. Harrison Karnwea, the manager of the Forestry Development Authority in Liberia, stated that China Union were not the ones to blame for setbacks in the project. The Liberian government could not turn the mine over to China Union immediately due to bottlenecks in the government.

Analytic Confidence:
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, did not use a structured analytic method, worked alone, and collaborated with a team. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst****:** Jared DeTal