By G. Watson Richards
Liberia could be losing billions of dollars in mining revenue due to weak oversight, underreporting, and systemic governance failures, according to a new assessment report.
The report, commissioned by Forest Trends and conducted by a team of Liberian and international experts, paints a stark picture of a sector generating vast mineral wealth while delivering limited benefits to the state and its citizens.
Billions Missing in Trade Discrepancies
Data from the Liberia Extractive Industries Transparency Initiative (LEITI) shows that mining companies paid approximately US$844 million to the government between 2007 and 2023. In contrast, importing countries reported US$7.8 billion in Liberian mineral imports over the same period-primarily gold and iron ore.
This assessment by Forest Trends reveals a staggering discrepancy of about US$2.7 billion, roughly 43% higher than Liberia’s officially recorded exports.
Experts say the gap strongly suggests widespread smuggling, transfer pricing manipulation, and tax evasion-potentially depriving the government of critical revenue for infrastructure, healthcare, and education.
“The scale of the gap indicates systemic leakage,” the report notes, warning that weak verification systems make it difficult to fully quantify total losses.
Communities Also Shortchanged
The losses extend beyond state coffers to affected communities. Under Mineral Development Agreements, mining companies were expected to pay more than US$173 million to communities by 2023. Yet, at most, only US$119 million has reportedly been paid, along with an additional US$12 million in non-cash contributions.
More concerning, payments have often been routed through county authorities rather than dedicated community funds, raising red flags about transparency and accountability.
An audit by the General Auditing Commission found serious compliance gaps and weak oversight by the Ministry of Internal Affairs.
Environmental Damage Escalates
While revenues fall short, environmental costs continue to rise.
The report highlights increasing deforestation, water pollution, and unsafe chemical handling, with regulators struggling to keep pace.
A nationwide compliance check conducted by the Environmental Protection Agency (EPA) in 2025 uncovered widespread violations within the mining sector.
In early 2026, reporting by the Associated Press alleged that Bea Mountain Mining Corporation-the country’s largest gold miner, had repeatedly spilled hazardous chemicals, intensifying concerns about environmental safeguards.
Mining licenses now overlap more than 2 million hectares of forest, including protected and community-managed areas, undermining Liberia’s conservation commitments.
Threat to Climate and Stability
The findings raise alarms about Liberia’s ability to meet its international climate commitments, including its pledge to protect 30% of its land by 2030 and reduce deforestation.
Unregulated and artisanal mining, largely absent from official data-further expands the sector’s environmental footprint.
Meanwhile, tensions between mining companies and local communities are rising, with disputes over land use and benefit-sharing threatening to escalate into broader instability.
A Sector at a Crossroads
The report concludes that while Liberia’s mining sector holds immense potential, it is currently undermining national development goals.
Without urgent reforms, the country risks continued revenue losses, environmental degradation, and social conflict.
Key recommendations include:
Strengthening transparency and reconciling trade data
Enforcing legal obligations to communities
Closing tax collection gaps
Increasing funding for environmental monitoring and enforcement
Developing a national land-use strategy
The Bigger Picture
For a country striving toward sustainable development, the implications are profound. Billions of dollars that could transform Liberia’s economy appear to be slipping through the cracks.
Unless governance improves, experts warn, Liberia’s natural wealth may continue to benefit external actors and a narrow elite—while leaving forests degraded, communities marginalized, and the promise of development unfulfilled.