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to enable LAMCO to exercise its rights in the area - and he was
refunded by LAMCO all expenditures made with respect to the
exploration of the area. Furthermore, the Government granted
Togba the right to explore Mount Wutivi in the Wologisi Range in
Lofa County or elsewhere for iron ore deposits and promised to
cede him such area for the duration of any Concession Agreement
that might be concluded between the Kitoma Mining and Trading
Company and Government (33),
THE ORGANIZATIONAL STRUCTURE AND THE OWNERSHIP OF THE LAMCO J.V.
The Lamco Joint Venture is a venture in which LAMCO owns a 75?
interest, and the Bethlehem Steel Corporation a 25? interest.
Since November 1, 1967 Bethlehem Steel's interest in the Joint
Venture has been owned by the Liberian Bethlehem Iron Mines
Company ("Libeth"), a 100? subsidiary of the Bethlehem Steel
Corporation. The Joint Venture's legal base is formed by the
LAMCO Joint Venture Agreement which was signed on April 28, 1960,
and later amended in 1974- Bethlehem Steel Corporation, one of the
five largest mining companies in the world, signed (also on April
28, 1960) a Tax Agreement with the Government of Liberia which
governs its fiscal obligations in respect of the West African
Republic (see below for more details). As stated before, LAMCO
(a company which is organized under Liberian Laws) is 50? owned
by the Liberian Government and 50? owned by the Canadianregistered
holding company Liberian Iron Ore Ltd. which in its
turn is owned by the I.A.A.C and the Swedish Lamco Syndicate.
The Syndicate is the predominant shareholder in L.1.0. with
Grangesberg owning a controlling interest of 53.6? of the
Syndicate's 74.8? interest in L.1.0. As of December 1977 three
other Swedish companies held the remaining portion of the
Syndicate's share in L.1.0. (see Chart 2). I.A.A.C holds the
remaining 25.2? of L.1.0.'s shares. The names of these private
shareholders are U.S. citizens , followed by Canadians. Over
2,700 Liberians also participate in L.1.0. but their number is
disproportionate to their financial interest which apparently
does not exceed 4? of I.A.A.C.'s share in L.1.0. (34)«
The S.E.B. was made the Exclusive Advisor of both LAMCO and
L.1.0. but the Bank also provides services such as the general
financial administration and other administrative services of the
companies (35)« The Bank's relationship with Grangesberg was
mentioned before.
The actual producer of the ore in the Nimba Mountains is the
LAMCO Joint Venture Operating Company, as a result of yet
another agreement signed on April 28, 1960 by LAMCO and the
Bethlehem Steel Corporation, ("the LAMCO Joint Venture") and the
Swedish LAMCO Syndicate. The Syndicate accepted the management
for the Joint Venture's operations but delegated it to its main
participant, Grangesberg, which in its turn assigned the
management to the Granges International Mining Company (G.I.M.),