Koidu Limited, Sierra Leone’s largest diamond mining company, has halted operations and laid off more than 1,000 local workers after a prolonged dispute over wages and working conditions.
The company, a subsidiary of Octea Limited founded by Israeli billionaire Beny Steinmetz’s BSG Resources, has faced months of strikes and unrest. Workers initially went on strike in December 2024 but temporarily suspended their walkout to allow for negotiations. The strike resumed in early March after talks failed to resolve the issues.
Charles Kainessie, president of the Koidu Limited Workers’ Union, told Reuters that only a small number of staff remain employed at the company’s headquarters in Freetown. Sierra Leone’s labor ministry has received dismissal letters for more than 1,000 workers, confirming the shutdown in a May 6 statement.
Workers have expressed dissatisfaction with their pay, claiming they received only 30% of their wages because their salaries, pegged to the U.S. dollar, were paid in local currency at a 2016 exchange rate. They also reported a lack of proper sanitation and drinking water facilities.
Koidu Limited has not publicly addressed these allegations. Ibrahim Turay, the company’s head of corporate affairs, stated he was “restricted from making any comments on the issue for now.”
The closure could have global implications, as Koidu Limited’s exports are valued at around $100 million annually, according to industry sources. This comes at a time when the diamond market is already facing supply constraints, including from other major producers like India.
The dispute has also drawn political attention, with Sierra Leone’s First Lady, Fatima Bio, criticizing the company’s treatment of workers during a visit to the area in March. Bio’s comments, which the company has rejected as false, have fueled tensions further. She called Koidu’s actions “unjust” and posted her criticism on social media.
In response, Koidu Limited issued a letter to Bio accusing her of unlawful interference, incitement, and defamation. The company demanded a public retraction of her statements and a written commitment not to make further threats against the company.
The company claims it has lost over $16 million due to the strike and estimates it will require $20 million to restart operations.
Sierra Leone’s Information Minister, Chernor Bah, told Reuters that efforts are underway to resolve the standoff.