Sierra Leone's largest diamond miner shuts down, laying off more than 1,000 workers
FREETOWN, May 12 (Reuters) - Koidu Limited, Sierra Leone's largest diamond producer, has halted operations and laid off nearly its entire local workforce of more than 1,000 employees following a protracted dispute over pay and working conditions.
Workers at the mine went on strike in December 2024 but suspended their walkout to allow negotiations. They then walked out again in early March.
The firm, a subsidiary of Octea Limited, was founded by Israeli billionaire Beny Steinmetz's BSG Resources.
Charles Kainessie, president of the Koidu Limited Workers' Union, told Reuters that only a small number of workers were still employed at the company's head office in Freetown.
Sierra Leone's labour ministry has received copies of summary dismissal letters for more than 1,000 employees, it said in a statement on May 6.
Kainessie told Reuters that workers had only been receiving 30% of the value of their salaries because they were pegged to the U.S. dollar but paid in the local currency, and the company was using an exchange rate from 2016.
He also said workers lacked access to adequate toilet facilities and drinking water.
Koidu Limited declined to comment on the allegations. Its head of corporate affairs, Ibrahim Turay, said he was "restricted from making any comments on the issue for now".
The shutdown could impact global diamond markets, already facing supply constraints from major producers, including India. Koidu Limited's exports are around $100 million, according to industry sources.
Koidu has accused Sierra Leone's First Lady, Fatima Bio, who hails from the area where Koidu operates, of fanning the flames of the dispute.
Fatima Bio visited the area after the walkout in March and addressed the workers, criticising the firm in remarks the company has rejected as false.
Following her visit, she said in a social media post that Koidu had been "unjust to the workers for far too long".
Gustaf Fredrik Bodin, a Koidu Limited director and its general counsel, responded in a May 6 letter addressed to Fatima Bio accusing her of unlawful interference, incitement, defamation and causing damage to Koidu Limited and Octea Limited.
Neither the First Lady nor her office responded to Reuters' requests for comments on Koidu's accusations and threat of legal action.
The letter, seen by Reuters, said Koidu Limited had suffered financial losses exceeding $16 million from the strike, and that it would need $20 million to restart operations.
It demanded a public retraction from Fatima Bio for her statements and a written commitment that she will make no further threats against the company.
Sierra Leone Information Minister Chernor Bah told Reuters that "everything is being done to resolve the impasse."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
South Africa's $5.8 billion Hive project aims to lead low-cost ammonia output
CAPE TOWN, June 12 (Reuters) - A $5.8 billion project on South Africa's east coast seeks to use the country's infrastructure and cheap renewable power to make some of the world's cheapest green ammonia for clients in Europe and Asia, an executive said. South Africa is vying with other African nations, including Egypt, Morocco and Namibia, to meet rising demand in the European Union and Asia for hydrogen and ammonia described as green because they are produced from renewable energy. Ammonia is used in making fertiliser and by the chemical industry and it is also the means to deliver hydrogen, which is sought after to reduce carbon emissions but is very difficult to ship or pipe. The project at the port of Coega, jointly developed by Britain's Hive Energy and South African partner BuiltAfrica, is expected to ship around one million metric tons a year of green ammonia to clients by late 2029, Hive Energy's Africa CEO Colin Loubser told Reuters. "Our project, we believe, will provide the lowest cost green ammonia globally," he said on the sidelines of an energy conference in Cape Town. The project can use existing infrastructure and ample wind and solar energy. A desalination plant on site, operated by South Africa's biggest salt-maker by volume Cerebos, for example, will also help to offset capital expenditure. Benchmarking global indices, Loubser said green ammonia was priced at around $760 a ton free-on-board, but the Coega operations could produce the commodity for less. "We can produce at $650 a tonne and still give an investor a very attractive double-digit internal rate of return," he said, adding that the company was in talks with customers in Europe, Japan and Korea. According to South Africa's Department of Trade, Industry and Competition, the country could approach $1 per kilogramme of green hydrogen by 2050. Loubser said subsidy programmes in countries such as Australia and India may pose a threat to South Africa, but that it should remain competitive in the nascent sector. Strategically situated along a major shipping route, Hive's project could eventually quadruple production to 4 million tpa, Loubser said.
Reuters
3 hours ago
- Reuters
Ivanhoe restarts part of Congo copper mine; cuts output guidance
June 12 (Reuters) - Ivanhoe Mines ( opens new tab said on Wednesday it had resumed underground mining in part of its Kakula copper mine in the Democratic Republic of Congo that had been closed due to seismic activity, but lowered output guidance for the year. Mining on the mine's western side resumed on June 7, while Ivanhoe will start pumping water out of the eastern side in August, aiming to finish by the year's fourth quarter. It will also look to open a new section for mining in the eastern part. The Kakula mine is part of the giant Kamoa-Kakula copper mining complex. The Canadian miner said it now expects 370,000 tons and 420,000 tons of copper output from the Kamoa-Kakula mining complex. It had withdrawn earlier guidance of 520,000 and 580,000 tonnes following seismic activity and floods in May. The company also withdrew its 2026 target of about 600,000 tonnes of copper production. "This is a significant setback for the plans at Kamoa-Kakula and leaves uncertainty about 2026 and beyond production and whether mining can resume in the previously developed area of Kakula East," analysts at RBC said in a note. The disruption is the latest in a series of supply-side setbacks that has tightened global copper supply, helping to drive margins for smelters into deeply negative territory. Co-owner Zijin Mining ( opens new tab has not issued any statements on the mine's status since May, when it said the tremors had damaged mine roofs and could affect output. Ivanhoe subsequently disputed Zijin's statement, although it later withdrew guidance. Zijin did not immediately respond to an emailed request for comment about Ivanhoe's latest statement.
Reuters
11 hours ago
- Reuters
Exclusive: Barrick Mining removes Mali gold complex from 2025 output forecast, sources say
TORONTO/DAKAR, June 11 (Reuters) - Barrick Mining ( opens new tab has removed its Mali gold complex from its overall output forecast for 2025, four sources told Reuters, adding to fallout from a two-year dispute over new mining legislation aimed at boosting the West African country's revenue. Operations at the Loulo-Gounkoto gold complex, one of the Canadian miner's largest gold assets in Africa, have been suspended since January after the military-led government blocked gold exports by the world's third-largest miner of the precious metal, detained staff and seized three metric tons of stock during separate negotiations over a new mining contract with Barrick. At stake for both sides is the opportunity to realize revenues worth at least $1 billion this year due to record high gold prices . Mali risks repelling potential investors, while Barrick shares have lagged those of its peers. The sources spoke on condition of anonymity as they were not authorized to speak publicly. Spokespersons for Barrick did not immediately respond to a request for comment, nor did a spokesperson for Mali's Mines Ministry. Barrick has not made its Mali output forecast public, but Morningstar analysts had predicted Mali would contribute around 250,000 ounces in 2025. Mali's government, a shareholder in the complex, asked a domestic court in May to appoint a provisional administrator to reopen the complex, which would effectively see Barrick lose control over the mines that accounted for 14% of its total output, according to Jefferies. A court hearing on the matter is scheduled for Thursday. Negotiations are ongoing in parallel with the court case. In a significant concession, Mali has agreed to allow Barrick to repatriate 20% of its earnings into an international bank account, an exception that was not made for any other foreign miners who recently renegotiated contracts with the state, two people familiar with the matter said. However, one remaining point of contention between Barrick and Mali is that authorities would like all future disputes to be handled in domestic courts. Barrick said any new mining contract should be covered under an international treaty and, in case of future disputes, be settled through international arbitration, according to one of the people and another source familiar with the matter. While strong gold prices have supported Barrick's global revenue, the threat of a provisional administration worries investors, one of the sources said, noting that even if the miner later regains control of the complex, it could be left with depleted gold reserves. In December, Barrick launched international arbitration proceedings against Mali. In May, it asked the World Bank's arbitration court to halt court proceedings in Bamako over provisional administration. According to two people aware of the development, the tribunal rejected that request. The president of the arbitration tribunal for the case declined to comment. In the first nine months of 2024, production in Mali contributed $949 million to Barrick's revenue. Jefferies, in an analyst report last December, estimated that if the Mali complex remains idle, Barrick would lose 11% of its expected 2025 earnings before interest, taxes, depreciation, and amortisation. Mali is Africa's third-largest gold-producing country. Malian authorities, which seized power in coups in 2020 and 2021, say their current agreement with Barrick is unfair. The state has negotiated new agreements with other multinational miners. The chief executive of Australian miner Resolute was detained for more than a week amid negotiations last year.
