A significant development has unfolded for Ivanhoe Atlantic, a company backed by billionaire mining tycoon Robert Friedland. The firm is set to advance its ambitious plans for iron ore extraction in Guinea by securing a crucial rail deal with Liberia. This agreement, finalized recently, allows Ivanhoe to transport an initial 5 million tonnes of iron ore from its Kon Kweni deposit in Guinea through Liberia to an established port.
The long-awaited ratification of access to Liberia’s rail and port infrastructure had delayed Ivanhoe’s plans to list on the Australian Securities Exchange via an initial public offer since the beginning of the year. Construction at the Kon Kweni site, which is partially owned by the Guinea Government, is now scheduled to commence in the first quarter of 2026. The company’s environmental impact assessments in both Guinea and Liberia are currently under review as part of the process.
Strategic Logistics and Infrastructure Development
West Africa’s untapped iron ore resources present lucrative opportunities for companies like Ivanhoe Atlantic, based in the United States. However, the region’s mining landscape is complicated by logistical challenges and political dynamics. Earlier this month, Rio Tinto and its Chinese partners at the Winning Consortium marked the departure of their first shipments from the high-grade Simandou iron ore project, located approximately 160 kilometers from Ivanhoe’s operations. This achievement followed years of negotiations and the construction of 600 kilometers of new railway infrastructure.
Ivanhoe Atlantic aims to leverage the existing rail network in Liberia, with plans to assist the Liberian government in establishing the National Rail Authority. This authority will oversee the appointment of an independent operator for the rail system. Bronwyn Barnes, the chief executive of Ivanhoe, expressed that the ratification of the rail agreement aligns with the policy of Liberian President Boakai to transition to a multi-user, independently operated rail system. She described the agreement as a “significant milestone,” emphasizing its potential to create a valuable logistics chain for other users in Liberia and surrounding countries.
A statement from the Liberian government indicated that Ivanhoe Liberia would eventually develop up to 30 million tonnes per annum (mtpa) of rail-port access capacity. This development required an upfront payment of $37 million to the previous administration. Additional payments are anticipated, including $10 million due upon ratification and another $15 million contingent on achieving “physical access for Phase 1 operations.” However, the company acknowledges that increasing production to the full capacity of 30 mtpa will necessitate further upgrades to the rail system and the construction of a new port at Didier.
Challenges Ahead
Despite the optimism surrounding the project, Ivanhoe Atlantic faces potential political challenges. Reports surfaced indicating concerns about the Guinea government adhering to a 2019 agreement that permitted the transportation of iron ore through Liberia. In addition, opposition has emerged from a Republican member of the US Congress, who raised concerns regarding Ivanhoe’s connections to China. In response, Barnes assured stakeholders at a mining event in August that none of the iron ore produced at Kon Kweni would be sold to China.
As Ivanhoe Atlantic prepares to embark on this new venture, the company remains focused on navigating the complexities of West Africa’s mining environment while tapping into its rich iron ore potential. The coming months will be critical as construction begins and the company seeks to establish itself firmly in the region’s mining sector.
