Koidu Limited Layoffs Ignite Calls for Overhaul of Mining Sector

By Alusine Sesay

The ongoing dispute between workers and Koidu Limited, Sierra Leone’s largest diamond mining company, has reignited calls for a comprehensive review of mining agreements in the country. The conflict, centered around workers’ demands for fair wages, proper working conditions, and payment in line with current exchange rates, has taken a political turn following the involvement of the country’s First Lady.

While the public debate has focused on the First Lady’s role, activists and analysts stress that the fundamental issue remains decades-long human rights violations and economic disparities tied to the country’s mineral sector. Despite generating millions of dollars in revenue, Sierra Leone continues to grapple with socio-economic challenges, leaving workers and mining communities in dire conditions.

At the heart of the workers’ demands is the enforcement of their contracts—originally signed in U.S. dollars—at updated exchange rates rather than those set nearly a decade ago. Additionally, they seek improvements in basic necessities such as clean drinking water, proper sanitation in mining areas, and fair compensation for overtime work. However, instead of addressing these concerns, Koidu Limited has opted to lay off over 1,000 workers, triggering widespread outrage and economic distress in Koidu Town.

Mining in Sierra Leone is regulated by the Mines and Mineral Development Act of 2022, which replaced the 2009 legislation. The Act outlines provisions for exploration, mineral development, and export while emphasizing transparency, accountability, and socio-economic benefits. However, critics argue that the law does not sufficiently empower Sierra Leoneans to take ownership of their country’s mineral wealth.

The debate surrounding mining agreements has intensified in light of developments in neighboring Guinea and Burkina Faso, where governments have introduced policies favoring national interests. In contrast, foreign dominance in Sierra Leone’s mining sector continues, with foreign companies securing lucrative contracts and investments while locals struggle to compete.

Observers believe the government should adopt more “pro-country” policies that require foreign investors to partner with Sierra Leonean businesses. Previous examples, such as the partnerships spearheaded by the late Moseray Fadika and John Bonor Sisay, demonstrated how local involvement can enhance economic growth and benefit communities.

The ongoing discussions on mining sector reforms have also raised concerns about the controversial Mineral Wealth Fund, reportedly managed by foreign entities. Analysts urge the government to place Sierra Leoneans at the forefront of managing the nation’s mineral resources to ensure long-term economic empowerment and national stability.

As tensions rise in the wake of Koidu Limited’s mass layoffs, calls for a thorough review of all mining contracts are growing louder. Advocates argue that without urgent reforms, Sierra Leone risks further economic exploitation and instability, undermining its citizens’ ability to benefit from the country’s vast mineral wealth.

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