Koidu Limited, Sierra Leone’s largest diamond mining company, has suspended operations and laid off the majority of its local workforce—more than 1,000 employees—due to a protracted dispute over wages and working conditions.
The conflict began with a strike in December 2024, which workers temporarily paused in hopes of reaching an agreement through negotiations.
However, after talks stalled, employees resumed industrial action in early March, according to Reuters.
Charles Kainessie, president of the Koidu Limited Workers’ Union, reported that only a handful of staff remain at the company’s head office in Freetown.
The Ministry of Labour has confirmed receiving mass termination notices affecting over 1,000 workers.
At the core of the dispute is the company’s pay structure. Kainessie explained that salaries pegged to the U.S. dollar were being disbursed in Sierra Leone’s currency using an outdated 2016 exchange rate—resulting in workers receiving only about 30% of the actual value of their wages.
He also raised concerns over poor working conditions, citing inadequate access to clean drinking water and sanitation facilities.
The shutdown threatens to further strain global diamond supplies, already under pressure due to production slowdowns in key countries like India.
Industry sources estimate Koidu Limited’s annual diamond exports at approximately $100 million.
The dispute has also taken on a political dimension. The company accused Sierra Leone’s First Lady, Fatima Bio—who hails from the Kono District where the mine is located—of fueling tensions.
During a visit to the area in March, she publicly criticized the company on social media, labeling its treatment of workers as “unjust.” Koidu Limited dismissed her remarks as false.
The company claims it has incurred financial losses exceeding $16 million due to the strike and estimates it would need at least $20 million to restart operations
