The_Open_Door_deel1

THE NATIONAL IRON ORE COMPANY
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The circumstances connected with the desire of President Tubman
to have the Mano River Iron Ore Deposits, discovered by L.M.C,
exploited by a new company in which the Government would take a
50? interest, private investors 35?, and L.M.C. 15? - in
recognition of its original rights to develop these deposits -
were already explained (see above). The subsequent granting of
a concession for the mining of these deposits to the National
Iron Ore Company Ltd. had taken place on March 13, 1958, and was
approved by the Legislature one week later.
Total equity capital of N.I.O.C consisted of 1,000,000 shares
with a par value of $ 10.00, In accordance with the Statement of
Understanding of 1957 the Government subscribed to 500,000
shares, L.M.C paid for 150,000 shares, and for the remaining
$ 3.5 million worth of shares the Liberian Enterprises Ltd. was
created by Lansdell Christie in which he, together with a small
number of his associates, invested $ 1.5 million. Christie also
developed a loan scheme which encouraged Liberian participation
in the new mining company (through Liberian Enterprises, Ltd.
(L.E.L.)). He advanced (interest-free) $80. for each share of
$100. of L.E.L. to which Liberian citizens subscribed whereas
small investors were permitted to pay their $20. in three installments-.
Fifty percent of N.I.O.C.'s future profits accruing
to Liberian Enterprises would be used to repay the total amount
thus lent to Liberian shareholders, some $ 1.6 million (94).
In this way total investments of Liberian citizens in N.I.O.C.
amounted to $ 2.0 million. Through L.M.C and L.E.L. Christie
and his associates owned 21? of the capital stock of N.I.O.C,
and Republic Steel was the owner of about 9? of N.I.O.C.'s equity
capital (through its 59.2? interest in L.M.C). Though N.I.O.C
was thus 70? in Liberian hands and the company might for that
reason have been excluded from this study the strong involvement
of L.M.C. and of Lansdell Christie in the Mano River Mine
justify a more than superficial look at it.
In accordance with the concession agreement on August 28, 1958 a
Management Agreement was signed between N.I.O.C, and the Mine
Management Associates'Ltd. (M.M.A.L.), a company especially
created for the management of N.I.O.C. and assisted by another
(New York based) company, the Associated Mines Services (A.M.S.).
Both companies were 100? owned by Lansdell Christie and, after
his death in 1965, by his heirs, the Christie Estate. On
December 31, 1960 N.I.O.C. and L.M.C. signed a Trackage Agreement
for the use of L.M.C.'s railroad as well as other facilities by
the Mano River mine and on January 3, 1963 the two mining
companies concluded the Memorandum of Agreement earlier referred
to under which L.M.C. was to provide technical services (on
operational matters only) to N.I.O.C (see above).
Owing to the disappointing Fe-content of the Mano River ore an
Ore Purchase Agreement was reached, in a letter from L.M.C. to