BIG DEAL: China Union Investment's Liberia Bong Mine Project is launched in the compnay of (front l-r) Chinese Deputy Minister of Commerce of China Fu Ziying, Liberian President Ellen Johnson Sirleaf and Liberia's Speaker Alex Tyler

The West African state of Liberia is one country in the region that relies heavily on mining of iron ore to boost its economy along with the annual revenue generating capacity of the government. But two separate civil wars that broke out in the country, first in 1989 and then in 2003, have ravaged the sector. In the process, the conflicts hampered the government's ability to deliver social services to the people and pay civil servants on time.

The 14 years of civil war stagnated the iron ore sector, leaving many Liberians, especially ordinary people who depend on mining for their livelihood, unemployed during this time. It also badly dented the government coffers.

Mining sector savior 

When Ellen Johnson Sirleaf, President of Liberia, came to power in January 2006, she repeatedly assured Liberians that her government would work to create employment with a specific focus on the mining sector. This was singled out as one area that would play a major role to reduce massive unemployment in the country.

After a billion dollar venture with steel giant Acelor Mittal in 2007 proved less than expected due to the global financial crisis, lost hopes were once again restored in April 2010, when the biggest agreement ever signed by a Liberian Government since the independence of the country in 1847 was unveiled. Reached between Liberia and China Union for mining exploration in central Liberia, the biggest mining region in the country, the deal is worth $2.6 billion. China Union fronted up with an initial $40 million as a signature fee before full-scale operations begin.

Vice Minister of Commerce of China Fu Ziying led a high power 42-member Chinese Government delegation, which included senior government officials and business executives to Liberia in April to officially sign the agreement.

Although the China Union agreement was the focus of the delegation's visit, six other agreements were also inked with the Liberian Government. These agreements include: an agreement on economic and technical cooperation between the two countries, with the Chinese Government providing $8.8 million gratuitous assistance to the Liberian Government, zero tariff treatment with 60 percent of goods originating in Liberia exported to China being totally exempt and a technical cooperation project with the Liberia Broadcasting System, with the Chinese providing five experts to maintain the facilities and provide training for the station's technicians.

China's commitment

The unveiling of these agreements are viewed by many Liberians as a clear demonstration of the Chinese Government's commitment to help Liberia recover from the ashes of civil war and to help ordinary people revive their lives.

Miner Octavius Williams, a resident of Liberia's central Bong County region, where the China Union's operation would be concentrated, feels relief over the signing of the agreement.

"With the signing of this agreement, it means employment is very well in sight for someone like me because I have been out of job for too long," he told ChinAfrica.

Williams believes that his community stands to benefit immensely, not just from the social development funds that will be paid from the agreement by China Union to empower them to build schools, clinic and roads, but it would provide jobs to many young people.

Rita Mulbah, another resident in the rich mining area of central Liberia, sees the agreement as something that would reduce the vulnerability of the youth to be used by politicians to cause trouble if they have jobs.

"I see the China Union deal as something that will help us to sustain the peace and security of our nation, since most of our young people would be absorbed by the company for employment to care for themselves and their families," she said.

At the signing ceremony, Vice Minister Fu said the agreements proved the solidity of the long-standing bilateral relations between the two countries and he assured the post-war nation of China's continuous assistance to the recovery efforts of Liberia.

He reaffirmed China's commitment to assist African nations like Liberia as a way of fostering the relationship between China and Africa.

For her part, President Sirleaf sees the visitation of the Chinese delegation as a signal of Chinese President Hu Jintao and his government's commitment and dedication to assisting Liberia. Some of the country's leading opposition politicians, who are strong critics of the government, have lauded the move to secure the agreement with the Chinese company.

Among them is Cyril Allen, the former chairman emeritus of former Liberian President Charles Taylor's National Patriotic Party of Liberia.

"One thing we must all hail this government for is the signing of the agreement with China Union. This is very unprecedented in the history of this country and I commend them [the government] for this," he said.