Zim Now Reporter
Koidu Limited, Sierra Leone’s largest diamond mining company, has halted operations and dismissed more than 1,000 workers as a prolonged labour dispute over pay and working conditions escalates.
The dispute dates back to December 2024, when workers initiated a strike to protest low wages. Although they temporarily suspended industrial action to allow for negotiations, talks collapsed, prompting a resumption of the strike in early March, according to Reuters.
Charles Kainessie, president of the Koidu Limited Workers’ Union, confirmed that most staff have been dismissed, leaving only a handful at the company's headquarters in Freetown. The Ministry of Labour also confirmed receipt of mass termination letters affecting more than 1,000 employees.
At the centre of the dispute is the company’s controversial pay structure. Kainessie said salaries were pegged to the U.S. dollar but paid in Sierra Leone’s local currency using a 2016 exchange rate—resulting in workers receiving only 30% of their actual earnings. He also cited poor working conditions, including a lack of clean water and adequate sanitation.
The shutdown of Koidu Limited threatens to further squeeze global diamond supply, already under pressure following production cuts from major exporters like India. The mine is estimated to contribute about $100 million annually in diamond exports.
The standoff has spilled into the political arena. Koidu Limited has accused Sierra Leone’s First Lady, Fatima Bio—who hails from the Kono District where the mine operates—of fueling unrest. During a visit to the region in March, she publicly criticised the company’s labour practices on social media, calling them “unjust.” The company dismissed her comments as false and inflammatory.
Koidu Limited claims it has lost more than US$16 million due to the strike and estimates it would need $20 million to restart operations.
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