The_Open_Door_deel1

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of 3.2 million long tons in any calender year. In addition to
this, CAEMI is entitled to additional income of 0.5? of the
proceeds of the first 3.2 million tons of ore shipped in any
calender year which 0.5? additional income will lapse when it
totals $ 800,000.00.
This figure is the amount which CAEMI advanced to enable N.I.O.C.
to make a financial settlement with Muller as compensation for
commission on quantities undelivered under sales contracts
negotiated by Muller. CAEMI also receives a fee of 5 cents per
long ton for checkweighing, sampling and analysis of all iron ore
products shipped under the arrangement (114). The Dutch also
assist M.M.A.L. by hiring staff personnel for the Mano River
Mine, making travel arrangements for the company's European
personnel, and making minor purchases for which services CAEMI
does not receive any fee but is reimbursed at cost (115).
Loans
N.I.O.C.'s financial record shows two distinct periods. The first
period is characterized by the initial investments which were
necessary for the development of a new mine and additional
investments needed because of the disappointing Fe-content of the
ore. The second period is marked by the expansion programme which
was introduced in 1968 in view of the expected disappearance of
L.M.C. in the early 1970's.
The originally planned investments were financed by various loans
totalling $ 10 million (6 million from the Export-Import Bank,
$ 2.6 million from Lansdell Christie, and $ 1.4 million from
L.M.C.) and the company's cash equity. These initial investments
totalled approximately $ 30 million (the balance being financed
by suppliers credits) and consisted of a railroad between the
Mano River and the Bomi Hills mines, $ 10 million, plus rolling
stock, $ 2 million, facilities at the port of Monrovia, $ 4
million, a power plant, a crushing plant and a washing plant at
the mining site, $ 4.5 million, buildings for its employees and
staff personnel, the administration, community services, and
transportation facilities (roads and equipment), $ 9 million
(116).
During the preparatory work for the opening of the mine in 1960,
it was discovered that the average Fe-content of the Mano River
ore would be much lower than the 63? which had been predicted.
This necessitated extra expenditure amounting to about $ 7
million in addition to the $ 20 million investment originally
envisaged (117), and a $ 7 million loan was provided by Muller &
Company ("Mano I").
As a result of the borrowing, debt service was considerable in
the early years of the operations of the company and interest
payments alone represented over 15? of all costs during the
years 1962 through 1964 and amounted to $ 4.3 million during
these years. On the other hand, the Government only received in
this period $ 225,000.00 from the $ 3,8 million profits made