By Sallieu S. Kanu
Freetown, Sierra Leone – August 18, 2025: Koidu Limited, a diamond mining company operating in Sierra Leone under the Octea Group, has issued a public statement on Monday, August 18, 2025, announcing its intent to pursue international arbitration against the Government of Sierra Leone (GoSL), citing serious breaches of its Mining Lease Agreement.
Koidu has retained London-based law firm Mishcon de Reya LLP to initiate negotiations with the GoSL. The company alleges violations of clauses 4.2 and 14.1 of its agreement, accusing the government of supporting First Lady Fatima Bio’s actions that allegedly incited civil unrest and failed to prevent violence at the mine site. If no resolution is reached within three months, Koidu plans to initiate legally binding arbitration in London under clause 27.2 of the agreement.
The company claims damages nearing US$100 million, citing the government’s failure to halt illegal strike actions, condemn inflammatory rhetoric, and protect Koidu’s employees and assets. It further alleges that the First Lady made unsubstantiated claims of corruption against Koidu’s management, which were not publicly refuted by the GoSL.
Koidu reports that its bank accounts have been unlawfully frozen, leaving it financially incapacitated. It also faces legal claims totaling US$87 million for defamation and workers’ compensation, which it describes as “exorbitant,” “unjustified,” and based on forged evidence.
This comes amid broader legal challenges. In July 2025, Sierra Leone’s Court of Appeal extended an injunction against Koidu and Octea, preventing them from disposing of assets. The case was brought by the Marginalized Affected Property Owners (MAPO), supported by local advocacy groups, who accuse the company of environmental degradation, displacement, and health impacts in Kono District3.
Despite media reports, Koidu insists the mine has not been shut down, and that Octea Group is not in administration. The mine remains in “care and maintenance” mode, with GoSL security forces guarding the site as per clause 7.2 of the agreement.
Koidu and Octea reaffirm their commitment to resume operations and rehire the workforce once legal matters are resolved. They urge the GoSL to engage in good-faith negotiations to reach a settlement that benefits all stakeholders.
Koidu Limited is a subsidiary of Octea Group, itself owned by BSG Resources. The company has operated diamond mines in Kono District since the early 2000s. Its operations have long been controversial, with local communities accusing it of failing to deliver promised relocations and compensation. Allegations include poisoned water sources, damaged farmland, and health issues linked to mining activities.
The unfolding legal saga could mark a turning point in Sierra Leone’s mining sector, raising questions about corporate accountability, government oversight, and community rights.