Koidu Limited, Sierra Leone’s largest diamond mining company, has officially ceased operations, resulting in the layoff of over 1,000 workers.
The shutdown follows months of industrial unrest, allegations of poor working conditions, and a high-profile intervention by First Lady Dr. Fatima Maada Bio.
Workers’ Grievances and Industrial Action
The labour dispute began in December 2024, when workers initiated a strike over concerns including underpayment due to outdated exchange rates, inadequate sanitation facilities, and lack of access to clean drinking water. Although the strike was temporarily suspended for negotiations, it resumed in March 2025 after talks failed to yield results. The United Mines Workers Union, representing the employees, emphasized that all legal avenues had been exhausted before resorting to industrial action.
Government and Human Rights Commission Involvement
The Ministry of Employment, Labour, and Social Security expressed disappointment over Koidu Limited’s handling of the dispute, accusing the company of undermining negotiation efforts and suppressing trade union rights. The Human Rights Commission of Sierra Leone also launched an investigation into the matter, aiming to assess potential human rights violations and facilitate a resolution.
First Lady’s Intervention and Legal Threats
First Lady Dr. Fatima Maada Bio visited the mining site in March 2025, expressing solidarity with the workers and criticizing the company’s treatment of its employees. In response, Koidu Limited accused the First Lady of unlawful interference and defamation, threatening legal action and claiming financial losses exceeding \$16 million due to the strike.
Transition to Care and Maintenance
In late March, Koidu Limited announced a transition into a “care and maintenance” phase, focusing on safeguarding its assets and ensuring safety. The company cited the ongoing industrial action and alleged illegal strike activities as reasons for the suspension of operations. Despite government efforts to mediate, the situation remained unresolved, leading to the mass dismissal of employees in May.
Impact on the Diamond Industry and Local Communities
The closure of Koidu Limited, which contributes approximately \$100 million in diamond exports annually, is expected to impact the global diamond market, already facing supply constraints. Locally, the shutdown has significant economic implications for the Kono District, where the mine is a major employer. Community members have also raised concerns about environmental degradation and health issues linked to the mining operations.
As the situation develops, stakeholders await further government action to address the grievances of the affected workers and communities.
