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Cavalla Resources failed, Refused Neglected 2.3 Million Obligation for 7 Unbroken Years

“We wish to indicate our disappointment in the absolute neglect of Cavallas obligations towards the Fantro concession since taking over operations from BHP Billiton”-Grand Bassa Legislative Caucus Chairman Hans Barchue said
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Grand Bassa, Liberia West Africa: – Social responsibility works as a platform for companies and their host communities alike to make a positive impact on the local scene to increase community engagement and loyalty.

Therefore, firms involved in extraction of natural resources sign what is known as mineral Development Agreement (MDA) which state exactly how and what they are to contribute to the advancement of their affected communities.

BHP Billiton signed a concession agreement with the Liberia Government in March 2010 with exploration carried out in three Counties-Grand Bassa County, Bong County and Nimba Counties.

Under the MDA, BHP Billiton paid $200,000 in cash as social development funds and scholarship contribution for students attending secondary high schools, colleges, universities.

This happened from 2010 – 2011 fiscal period to 2014 – 2015 fiscal period.

Cavalla Resources Limited took over from BHP Billiton in November 2015 as Jonah Capital’s exclusive Iron Ore Holding over four areas- Goe Fantra, Kitoma, St. John River South and Toto under the leadership of CEO Saba Jomah.

Liabilities associated with BHP Billiton per year as stated in the MDA is a Scholarship Social Development Funding of $200,000 per annual.

But Cavalla Resources Limited sold stock to BCM Limited between 2017 – 2018 which transferred liabilities started from 2015 – 2022.

Despite inheriting this transferred liability, BCM Limited has failed to pay a cent in fulfillment of its obligation under this transfer of liability even in the face of communications and in-person engagements.

Authorities in Grand Bassa County have grown increasingly frustrated as the Management of BMC has repeatedly failed to honor invitations for discussion.

A communication obtained by this paper shows that the county has written the London Headquarters of Cavalla Resources to express disappointment in the refusal to comply with terms and conditions in the Mineral Development Agreement (MDA).

In a letter dated September 21, 2022, Grand Bassa Legislative Caucus Chairman Hans Barchue said he was particularly interested in the concession area of Cavalla Resources falling within the Goe Fantro area in Grand Bassa county.

“We wish to indicate our disappointment in the absolute neglect of Cavallas obligations towards the Fantro concession since taking over operations from BHP Billiton”.

Rep Barchue said under the MDA Cavalla is required to annual social contribution already set out and warned that the company cannot claim ignorance of such payment required to undertake critical development programs for the community.

“However, since you took over the MDA from BHP Billiton you have failed, refused and

neglected to honor any of the obligations under the MDA. You currently owe Three Million, Two Hundred Thousand United States Dollars (US$3,200,000) representing both Social Development and Scholarship for the period 2015 – 2022, which you are required to pay but have failed to do since you took over the mines”

Representative Barchue accused the management of disposing of all or most of the heavy equipment that were left in its custody by BHP Billiton without any reference

to the County Authorities.

He said the company has furthered failed to even show any evidence that it paid the required taxes to the Liberian Government for selling heavy duty equipment left behind by Billiton.

“We are hereby notifying you that we are convinced that you have no intention of honoring your obligations under the MDA and we will be petitioning the Government and all necessary

Legislative Bodies to review your performance under the MDA and assess whether your continuous involvement serves the interests of Liberian people” he added

The letter also warned: “We will also be tabling parliamentary motion to debate this issue and possibly to pass a vote on your performance and possible termination’’.

According to the Bassa Legislative Caucus Chairman, the county’s leadership is seeking legal advice on all available rights in ensuring that any accrued benefits are “paid to us including any accrued interests”

“We frown on the attitude of any investors who acquires an operational license to operate the Mines, and without any investment into the operations of the Mines, puts out a bid to other companies only to take profits at the detriment of the people in the concession area” he concluded.

A visit to the operational site of the Cavalla Resources Grand Bassa County showed disappearance of heavy-duty machines left behind by BHP Billiton.

A contractor who asked not to be named said the community has not benefited anything from Cavalla Resources and its Management has shown complete lack of interest in Community Development.

The sources confirmed that nearly all the equipment at the mine have been sold to other companies by the Manager Fidel Jonah 

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