Koidu Limited, the largest diamond mining company in Sierra Leone, has suspended operations and dismissed nearly all of its over 1,000 local workers amid an ongoing dispute over wages and working conditions.
- Koidu Limited has suspended operations and dismissed over 1,000 local workers amid disputes over wages and conditions.
- Workers claim they receive only 30% of actual wages due to outdated exchange rate usage; they also cite poor working conditions.
- The conflict began with a strike in December 2024, escalating after failed negotiations, resulting in resumed strikes in early March.
Koidu Limited, the largest diamond mining company in Sierra Leone, has suspended operations and dismissed nearly all of its over 1,000 local workers amid an ongoing dispute over wages and working conditions.
The conflict began with a strike in December 2024, which workers temporarily suspended to allow room for negotiations. However, when talks failed to yield progress, workers resumed the strike in early March, according to Reuters.
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Charles Kainessie, president of the Koidu Limited Workers’ Union, told Reuters that only a few employees remain at the company’s head office in Freetown. The Ministry of Labour confirmed it had received mass termination letters affecting more than 1,000 employees.
At the heart of the dispute is the company’s salary structure. Kainessie said workers were receiving only 30% of the actual value of their wages because their salaries, pegged to the U.S. dollar, were being paid in Sierra Leone’s currency using an outdated 2016 exchange rate.
He also raised concerns about poor working conditions, citing a lack of access to clean drinking water and proper sanitation.
Diamond supply threat
The shutdown could further tighten global diamond supplies, which are already under strain due to production cuts from key exporters such as India. Industry sources estimate Koidu Limited’s exports at around $100 million annually.
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The dispute has also taken a political turn. Koidu Limited has accused Sierra Leone’s First Lady, Fatima Bio, who is from the Kono District where the mine operates, of aggravating tensions.
During a visit to the area in March, she publicly criticised the company, calling its treatment of workers “unjust” in a social media post. The company dismissed her remarks as false.
The company had reportedly suffered financial losses of more than $16 million due to the strike and estimated it would require $20 million to resume operations.
