Koidu Limited Halts Operations Following Mass Layoffs Due to Wage Dispute
Koidu Limited has halted operations and laid off over 1,000 workers due to disputes over wages and working conditions. Workers claim they are only receiving 30% of their actual wages due to an outdated exchange rate. Strikes resumed after failed negotiations beginning in March 2025, raising concerns about the strike’s impact on global diamond supplies. The situation has also taken a political turn involving Sierra Leone’s First Lady.
Koidu Limited, the largest diamond mining company in Sierra Leone, has suspended its operations and laid off a significant portion of its workforce, accounting for over 1,000 local workers. This sudden shutdown is rooted in ongoing disputes regarding wages and working conditions that have escalated since December 2024. Labor unrest began with a strike that workers had temporarily suspended in hopes of negotiating a resolution, but when those discussions faltered, strikes resumed in early March 2025.
Workers have raised serious concerns regarding their wages, claiming they receive merely 30% of their actual earnings due to the company’s wage structure, which is pegged to the U.S. dollar but relies on an outdated 2016 exchange rate. Additionally, they have pointed out alarming conditions at the mine, lacking access to clean drinking water and adequate sanitation facilities. Charles Kainessie, president of the Koidu Limited Workers’ Union, indicated that very few employees remain at the company’s headquarters in Freetown as a result of these dismissals.
The Ministry of Labour has confirmed the mass layoffs, issuing termination letters that affect over 1,000 employees, indicative of the severity of the situation. This shutdown has broader implications for the diamond market. Experts believe that Koidu Limited’s annual exports, estimated at around $100 million, could be impacted, tightening already strained global diamond supplies due to production cuts elsewhere, particularly in India.
The conflict has also taken a political turn, with Koidu Limited accusing Sierra Leone’s First Lady, Fatima Bio, of exacerbating tensions during a recent visit to the Kono District, where the mine is located. In a social media post, she criticized the treatment of workers by the company as “unjust.” Koidu Limited has dismissed her comments as unfounded, adding another layer to this complex situation.
Interestingly, the company has indicated that the strike has resulted in financial losses exceeding $16 million. To resume operations, they estimate they would need an injection of around $20 million. As this issue unfolds, the fallout may not only affect local employment but also reverberate across the global diamond market, raising questions about the future viability of local operations in Sierra Leone.
The suspension of operations by Koidu Limited marks a significant blow to Sierra Leone’s diamond mining sector, resulting in mass layoffs and a potential crisis in diamond supply. The disagreements over wages, exacerbated by poor working conditions, have not only impacted thousands of workers but are also stirring political controversy. The future viability of diamond production in Sierra Leone is now uncertain, with the company’s financial losses casting a long shadow on its operations.
Original Source: africa.businessinsider.com
