The Kidu Limited company, the largest diamond producer in Sierra Leone, has suddenly stopped its operations and lay off more than a thousand local employees, following a long -term dispute with workers on wages and working conditions.
The mine workers began a strike in December 2024, then they suspended it temporarily to provide the opportunity for negotiations, before they resumed it last March, in light of the escalation of tensions with the company’s management.
The ownership of “Coyado Limited” belongs to the company “OCTEA LIMITED”, which is affiliated with the “BSG Resources”, which was founded by Israeli businessman Benie Steinmetz.
Charles Kennessi, head of the company’s workers’ union, said that the vast majority of employees have been demobilized, and only a limited number of working in the headquarters in the capital Fritown.
He explained that the workers were receiving only 30% of their salaries, due to the company’s dependence on an old exchange rate dating back to 2016, although salaries are resistant to the US dollar and paid in the local currency.
He also pointed out that the workers lack appropriate health facilities and clean drinking water, which exacerbated the tension in the work environment.
The company declined to comment on these accusations, as Ibrahim Tourai, head of the institutional affairs department, stated that “it is forbidden to make any statements at the present time.”
Attractive and mutual accusations
In a remarkable development, the company accused the first lady in Sierra Leone, Fatima Pio, of interfering in the conflict and inciting workers, after her visit to the area from which she descends, where she delivered a letter in which the company strongly criticized, describing it as “unjust to workers for a long time”, according to a post on social media.
The company responded with an official message to the first lady, accusing it of “incitement, defamation and illegal intervention”, noting that the strike was caused by financial losses exceeding 16 million dollars, and that the resumption of operations will require additional investments worth 20 million dollars. She asked her to withdraw her statements publicly, and to present a written pledge not to repeat what she described as “threats”.
Economic repercussions
It is expected that the closure of the mine will cast a shadow over the global diamond market, which is already suffering from a shortage of supplies, especially with the decline in production in major countries such as India.
Coyado Limited exports are estimated at about $ 100 million annually, according to sources in the sector.
For his part, the Minister of Information, Sierra Leone, Chirinor Bah, confirmed that the government “is doing its best to resolve the crisis.”
