Liberia – IFC – New Liberty Gold Project

U.S. Position

July 15, 2014

The United States welcomes this discussion of IFC’s proposed investment of up to $18.93 

million in Aureus Mining, Inc., for the New Liberty Gold Project in the Republic of Liberia, a 

resource-rich, post-conflict state. 

The United States appreciates the Bank’s efforts to improve public financial management in 

Liberia, which was among the first Extractive Industries Transparency Initiative (EITI)-

compliant countries. The United States notes, for example, active IDA interventions in the areas 

of developing an integrated financial management information system, training procurement 

specialists, and improving the technical capacity of the legislature for better oversight of the 

country’s budget. As additional natural resources (e.g., oil and natural gas,) come online, the 

United States urges the World Bank Group to continue to build on its work and help the country 

manage the influx of revenue. 

Nonetheless, the United States continues to have questions about the development impact of 

IFC’s investments in certain extractive industries (e.g., gold mines), especially in fragile and 

conflict-affected situations, where there are more pressing needs. Going forward, the United 

States urges the Bank and IFC to work closely together to make the most of the associated 

development impacts from mining facilities. The United States looks forward to the opportunity 

to explore this issue in greater depth at a technical briefing later this year. 

The United States also has serious concerns about the environmental and social risks posed by 

this project, especially as they relate to the use of cyanide and project-related resettlement. 

The United States recognizes that cyanide is regularly used in mining operations (and other 

industrial processes) around the world, including in the United States. However, the U.S. is 

concerned about the adequacy of ancillary systems (e.g., transportation to and from site and

storage,). 

In this context, the United States is concerned by the fact that the tailing storage facility will not 

be lined. While Aureus and IFC believe that no lining is appropriate given the site’s 

geochemistry, the United States would have liked to see further kinetic testing (over a longer 

period of time). The United States also believes that the company should utilize a life-of-mine 

waste characterization program, including long-term monitoring, to protect surface streams.

On resettlement, the United States is pleased to see that a resettlement action plan was developed 

and is currently being implemented, and that a reclamation plan has been developed. Going 

forward, the United States urges IFC to work with the company to ensure that all appropriate 

funds are set aside for this plan. 

In light of these environmental and social risks, coupled with the fact that the Environmental and 

Social Impact Assessment disclosure fell far short of the U.S. legislative requirement, the United 
States wishes to be recorded as abstaining. Going forward, the United States continues to 

encourage IFC to disclose environmental and social analyses on a timely basis.