Sesa Goa has committed $2.6 billion for the development and operation of three Liberian iron ore assets it acquired last year.
According to sources, the figure also included expenditure on establishment of infrastructure.
Under the Mineral Development Agreement (MDA), valued over $2.6 billion, Western Cluster Ltd, the company now majority owned by Sesa Goa, will construct a railway from Monrovia to Bomi county, build a two-lane road from Tubmanburg to Mano River, develop the old NIOC/Bong Mines Pier at the Freeport of Monrovia, impart job training for Liberians, provide housing, modern public health facilities, water and sanitation.
It will have to spend more than $2 million annually towards the Social Development Fund of the counties – Bomi, Grand Cape Mount and Gbarpolu.
The exploration company has made an upfront payment of $42 million.
Further, it will pay $80,000 a year for the geology or mining engineering scholarship at the University of Liberia, especially for students from Bomi, Grand Cape Mount and Gbarpolu, as well as $40,000 towards for the creation and operation of mining and geology institute at the Liberian university.
Western Cluster will pay $1 lakh to the Government of Liberia to fund scientific research and facilitate the graduate training for students, who exchange for majoring in geology and mining engineering.
Some 30 per cent of Liberian nationals have to be in ten most senior management positions within first five years and 70 per cent of such positions will be filled by locals in ten years .
Sesa Goa last year had said it acquired 51 per cent stake in Western Cluster for $90 million.