Koidu Limited, the biggest diamond mining company in Sierra Leone, has officially suspended its operations and laid off more than 1,000 workers following a months-long standoff over wages and working conditions.

The shutdown marks one of the most significant labour and economic crises to hit the country’s mining sector in recent years.

The dispute began in December 2024, when workers at the Kono District mine embarked on a strike to protest what they described as unfair pay practices.

Though the strike was briefly suspended to allow for negotiations, talks broke down, and the industrial action resumed in early March.

With no resolution in sight, Koidu Limited terminated the bulk of its workforce, leaving only a handful of staff at its Freetown head office.

Charles Kainessie, president of the Koidu Limited Workers’ Union, told Reuters that the key issue remains the company’s salary structure.

He said employees were receiving just 30% of the actual value of their wages because payments were being made in Sierra Leonean leones using an outdated 2016 exchange rate, despite being pegged to the U.S. dollar.

“The workers are demanding fair compensation based on current market rates,” Kainessie said, adding that concerns also include poor working conditions, such as lack of clean drinking water and inadequate sanitation at the site.

The Ministry of Labour has confirmed receiving mass termination letters from the company affecting more than 1,000 employees.

The mine’s closure is expected to impact global diamond supplies, especially as other major exporters like India have already reduced production.

Industry sources estimate Koidu Limited’s annual diamond exports at around $100 million, making the halt a potential disruptor in international markets.

Tensions escalated further in March when Sierra Leone’s First Lady, Fatima Bio, visited the Kono region and publicly criticized the company’s labour practices.

In a social media post, she described Koidu Limited’s treatment of workers as “unjust.”

The company dismissed her comments as false and accused her of fuelling unrest in the area, where she has strong community ties.

Koidu Limited claims it has lost over $16 million due to the strike and says it will require at least $20 million to restart operations.

For now, the future of the mine, and the livelihoods tied to it, remains uncertain.