Sierra Leone Diamond Miner Halts Operations, Lays Off 1,000 Workers

Koidu Limited, Sierra Leone's largest diamond producer and a subsidiary of Octea Limited founded by Beny Steinmetz's BSG Resources, has halted operations and dismissed over 1,000 local workers amid a prolonged dispute over wages and working conditions. The conflict began with a strike in December 2024, resumed in March after failed negotiations, with workers protesting that their salaries, pegged to the U.S. dollar, were paid in local currency at an outdated 2016 exchange rate, effectively reducing their pay to 30% of its value. Workers also cited poor conditions, including inadequate sanitation and drinking water. Sierra Leone’s Ministry of Labour has received summary dismissal letters for the affected employees, while the company has accused First Lady Fatima Bio, who criticized Koidu publicly, of exacerbating tensions—a claim she denies. The strike has caused financial losses exceeding $16 million for the company and threatens to tighten already constrained global diamond supplies, with Koidu’s exports valued at around $100 million annually. Koidu Limited has refrained from commenting on the wage and conditions allegations, citing restrictions on public statements.