Koidu Limited, the largest diamond mining company in Sierra Leone, has ceased operations and dismissed the majority of its workforce, affecting more than 1,000 local employees amid a prolonged dispute over wages and working conditions.
The shutdown follows months of unrest at the mine. Workers initially went on strike in December 2024, temporarily suspending the action to allow for negotiations, before resuming their walkout in early March. The company, a subsidiary of Octea Limited and part of Israeli billionaire Beny Steinmetz’s BSG Resources, has not issued a detailed public statement about the closure.
According to Charles Kainessie, president of the Koidu Limited Workers’ Union, only a small group of employees now remain at the company’s Freetown head office. The Ministry of Labour confirmed it has received dismissal letters for over 1,000 employees.
Union representatives say miners were being severely underpaid, receiving only 30% of their actual earnings due to salaries being pegged to the US dollar but calculated using an outdated 2016 exchange rate. Workers also raised concerns about poor working conditions, including a lack of proper sanitation and access to drinking water.
Koidu Limited has not responded directly to the allegations. When approached, corporate affairs head Ibrahim Turay declined to comment, citing internal restrictions.
The closure of the mine could have wider implications for the global diamond market, which is already under pressure due to supply constraints from key producing countries such as India. Industry sources estimate Koidu Limited’s annual diamond exports to be valued at around \$100 million.