The Liberia Extractive Industries Transparency Initiative (LEITI) has held discussions with representatives of the Millennium Challenge Corporation (MCC) Compact Phase Two on critical reforms aimed at strengthening transparency, accountability and regulatory oversight in Liberia's mining sector.

The meeting focused on governance challenges affecting the mining sector and broader extractive industries as the MCC team conducts a gap analysis and collects data to support the Government of Liberia in developing new mining laws and pursuing other sectoral reforms.

Kelvin George, MCC Compact Phase Two Country Director, thanked the LEITI delegation for participating in the recently concluded Extractive Industries Transparency Initiative (EITI) Global Conference. He also congratulated the Head of the LEITI Secretariat on his election to the EITI International Board.

George informed the meeting that the MCC team was assessing gaps in Liberia's mining sector and gathering information to support the government's reform efforts.

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Meanwhile, Alieu Fuad Nyei, MCC National Coordinator, outlined the proposed second phase's priority areas, including mining, electricity and workforce development.

Nyei explained that these priorities align with the concept note submitted by the Liberian government for consideration under the MCC Compact Phase Two program.

The engagement provided LEITI with an opportunity to present governance weaknesses in the extractive industries and recommend policy and institutional reforms intended to improve regulatory compliance, strengthen public oversight and promote sustainable natural resource management.

Among the priorities presented was the need to strengthen the legal and regulatory framework governing artisanal and small-scale mining (ASM), including the establishment of cooperatives to improve organization and oversight.

LEITI noted that weaknesses in the administration and regulation of artisanal mining licenses contribute to illegal mining, illicit financial flows, inadequate oversight and potential government revenue losses.

The Secretariat headed by Jeffrey Yates called for a review of existing regulations to establish a clearer and more enforceable framework under which artisanal and small-scale miners can operate legally.

Another major recommendation was the decentralization of selected services provided by the Ministry of Mines and Energy.

LEITI observed that concentrating administrative services in Monrovia can make it difficult for miners and other stakeholders, particularly those in remote communities, to access licensing and related services. Decentralizing appropriate functions could improve accessibility, reduce administrative delays and make mining administration more efficient.

The Secretariat also emphasized the need to digitize extractive sector contracts and establish an accessible system for their management and disclosure. It argued that improved access to contract information would enable citizens and other stakeholders to better understand the obligations of extractive companies and the terms governing the exploitation of the country's natural resources.

The proposed digital system would support the storage, retrieval, management and publication of relevant contracts, subject to applicable legal requirements.

Beneficial ownership transparency was another priority raised during the discussions. LEITI called for stronger national disclosure mechanisms to identify the individuals who ultimately own or control extractive companies.

The Secretariat said such mechanisms are important for addressing hidden ownership arrangements, potential conflicts of interest, illicit financial flows and other governance risks.

Beyond these reforms, LEITI presented a wider package of proposals for consideration under the second MCC Compact. The recommendations include addressing gaps in exploration data, reconciling discrepancies between production and export volumes and values, and improving the reconciliation of data reported by government agencies and extractive companies.

The Secretariat also proposed establishing a sovereign wealth fund, strengthening the institutional capacity of key government agencies and introducing an anti-corruption initiative for the extractive sector.

Additional priorities include developing a national reclamation policy, finalizing the local content policy and portal, redesigning the Social Development Fund module, and improving the management of exploration data.

These measures are intended to strengthen institutional accountability, improve the reliability of extractive sector information and ensure that natural resource management contributes more effectively to national development.

The proposed reforms also seek to address longstanding weaknesses in the administration of mining activities and improve the government's ability to monitor production, exports, revenues and companies' compliance with applicable laws.

The discussions come as the MCC team assesses sectoral gaps and gathers information to support the government's preparations for the proposed second compact.

With mining, electricity and workforce development identified as priority areas, the engagement offers an opportunity to incorporate transparency and governance concerns into the broader reform agenda.

However, the proposals remain recommendations for consideration, and their adoption will depend on subsequent government decisions, policy development and implementation arrangements.