The mining sector forms the backbone of Liberia’s economy, long driven by iron ore. While gold and diamonds remain major exports, the country is now focusing on developing its critical minerals potential.

Liberia's President Joseph Boakai named Matenokay Tingban as the new Minister of Mines and Energy last week, replacing Wilmot J. M. Paye, who had held the post since 2024. The move is part of the president's ongoing efforts to boost governance and executive efficiency, Reuters reported. The appointment comes as Monrovia seeks to better exploit its potential in critical minerals, diversifying a mining sector currently dominated by iron ore.

Focus on Strategic Minerals

Iron ore has long been the engine of Liberia’s mining sector, generating revenues that accounted for "nearly half of the country's earnings before 1990," according to the Liberia National Investment Commission. Although this dependency has slightly decreased in recent years, mainly due to gold production, it remains significant. A report by the Liberia Extractive Industries Transparency Initiative (LEITI) showed that iron ore and gold dominated the country’s mineral exports from July 2021 to the end of 2022.

In response, Monrovia has ramped up efforts in recent months to promote the critical minerals present beneath its soil. In an interview with Energy Capital & Power last February, former Minister Paye described critical minerals as the "new challenge for Liberia’s mining sector."

"We recently completed a mineral potential survey that has provided a clearer picture of the country’s actual reserves. The survey identified over a dozen critical minerals, confirming the presence of lithium, cobalt, copper and nickel," Paye had stated. "With this scientific data in hand, we are reaching out to global investors interested in developing these resources."

This echoed a statement by President Boakai, reported by Bloomberg in January, in which he said Liberia expected to attract $3 billion in investment following the discovery of critical minerals. The emphasis on these resources was reinforced during the October meeting between U.S. Secretary of State Marco Rubio and Liberian Foreign Minister Sara Nyanti in Washington. A White House summary indicated the two officials specifically discussed opportunities to increase U.S. participation in Liberian critical minerals.

Favorable Market Outlook

While the new Mines Minister's roadmap remains unknown, and it is unclear if the critical minerals drive is his top priority, this ambition aligns with a favorable market context driven by the energy transition. The International Energy Agency (IEA) projects the value of the critical minerals market could reach $770 billion by 2040.

"At around USD 325 billion, today’s aggregate market value of key energy transition minerals aligns broadly with that of iron ore. The combined market value of key energy transition minerals – copper, lithium, nickel, cobalt, graphite and rare earth elements – more than doubles to reach USD 770 billion," the IEA explained in the executive summary of its Global Critical Minerals Outlook 2024.

Attracting investors and stimulating the development of new, structured projects in this mining segment would allow the West African nation to capitalize on the burgeoning market. However, despite the strong political will, the path to these goals remains long. Crucially, no precise estimates of the critical mineral reserves identified by the study mentioned by Paye have been publicly released. This lack of transparency can weigh heavily on investor decision-making, according to Mark Cutifani, former Chairman of Vale Base Metals.

"I would ask, and this is a plea to every country in Africa, if you want investment, open-source your geological survey data, allow it to be transparent and demand value for access to your resources, and make it an open conversation," he urged during the London Indaba in July.

Aurel Sèdjro Houenou