The_Open_Door_deel1

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For these services G.I.M. is paid a management fee which
includes a reimbursement for the expenses made in respect of
these activities as well as a "fee proper" which amounted to
$ 175,000.00 per year until the start of the production (i.e. in
1963), Thereafter the LAMCO J.V. paid to G.I.M. a fee of 7.5
cents per ton of ore produced for the Joint Venture and
delivered to the participants (LAMCO and Libeth) either f.o.b.
vessel at the loading port (Buchanan) or in stockpile (also in
Buchanan). In 1973 the management and sales agency contract
between LAMCO and Granges AB was changed and the management fee
was raised to 10 cents per ton of ore produced and delivered to
the two participating companies in the Joint Venture.
Under the 1960 Mining Concession Agreement LAMCO's or the
Concessionaire's Manager had become exempted from all and any
taxes, fees, royalties etc., including corporate income taxes
(40). In the 196O's this situation was changed as in 1968 a
Liberian-Swedish Tax Treaty was concluded (see below), and the
following year a Tax Agreement was signed by the Liberian
Government, Granges AB and the LAMCO Joint Venture Operating
Company. After the signing of these two agreements the Liberian
Government received 25? of the dividends which Granges AB was
paid by the management company (the amount which the Liberian
Treasury received represented one half of the Swedish tax savings
resulting from the Treaty). In 1976 the Liberian Government's
participation in these dividends was raised to 50?.
Ore Sales (41 )
The output of the Nimba Mountains Mine is divided between the two
participants in the (LAMCO) Joint Venture, LAMCO and Libeth, in
proportion to their financial involvement in the venture: on a
75 - 25 basis. The Bethlehem Steel Corporation supplies its own
steel plants in the U.S.A. with the ore but LAMCO sells its share
of the output on the international markets in competition with
other ore producers. Under its management and sales contract with
LAMCO, Granges is paid for the services rendered in respect of
the sales .of the LAMCO ore a 2? commission on the f.o.b. value
(Buchanan-Liberia) of the ore sold in case of the first five
million metric tons (on a yearly basis) and a commission
equivalent to 1? of the f.o.b. value (Buchanan-Liberia) of the
ore for all. sales in excess of five million metric tons. This
compares favourably with the commission paid to Wm.H.Muller & Co.
by L.M.C. and by N.I.O.C. (see Chapter 7). The fact that Granges
has also a direct interest in the best obtainable prices - being
an important shareholder in L.1.0., the Liberian Government's
private partner in LAMCO - seems to serve as an additional
guarantee that the best obtainable prices for the ore are
received. However, at least in one case a very dubious deal was
concluded which cost LAMCO over $"4,000,000.00, thus reducing
the Government's income from the Company by 50? of this amount.
This is made clear by the so-called "Triton-affair".