The ongoing industrial standoff between Koidu Limited, a subsidiary of the Octea Group, and its workforce has reignited public calls for a comprehensive review of all mining agreements in Sierra Leone. The situation, which recently drew national attention due to the involvement of the country’s First Lady, Dr. Fatima Maada Bio has shifted focus away from long-standing grievances concerning labor rights and socio-economic inequalities in mining communities.

Koidu Limited, the country’s largest diamond mining company, continues to generate millions of dollars in revenue from Sierra Leone’s natural resources. However, local communities and workers remain in dire economic conditions, struggling to secure fair labor practices and basic amenities.

Workers at Koidu Limited are not demanding new privileges; rather, they are calling for the enforcement of existing contractual agreements. These include the adjustment of their dollar-denominated salaries to reflect the current exchange rate, rather than the outdated 2016 rate, access to clean drinking water, proper sanitation facilities and rightful overtime payments.

Despite the legitimacy of these demands, the company has opted to halt operations while simultaneously laying off over 1,000 Sierra Leonean workers, leaving Koidu Town in a state of distress. This move has sparked outrage and prompted renewed scrutiny of the broader mining landscape in the country.

According to data from the Sierra Leone Labour Force Survey (2023), unemployment rates in major mining towns such as Koidu, Tongo and Bumbuna stand at over 37%, significantly higher than the national average of 22%. Youth unemployment in these areas is even more alarming, estimated at 52%, driven largely by unstable mining operations and lack of alternative industries. These statistics underscore the vulnerability of communities that are heavily dependent on extractive industries, especially when those industries fail to deliver on employment promises.

Mining operations in Sierra Leone are governed by the Mines and Minerals Development Act of 2022, which replaced the 2009 version. The new law introduces forward-looking provisions for exploration, development, sales and exports aimed at delivering tangible socio-economic benefits to Sierra Leoneans. It emphasizes transparency, accountability and environmental protection, while promoting community welfare and improved labor practices.

However, critics argue that the Act falls short in empowering Sierra Leoneans to own and manage mining operations. The growing demand for more “pro-country” policies, similar to recent reforms in Guinea and Burkina Faso where dozens of mining licenses were revoked and new nationalistic mining frameworks introduced, has gained momentum.

“Foreign investors come into Sierra Leone with little to nothing and leave with millions, even owning private jets, while our people remain impoverished,” said a local civil society activist. “It’s time to reverse that narrative.”

Examples from the region and beyond have shown that prioritizing local ownership and value retention can yield national benefits. Even former U.S. President Donald Trump championed pro-country business policies to ensure American interests were placed first.

In Sierra Leone’s mining sector, the absence of local participation has led to frustration. Foreign companies often sideline capable Sierra Leonean businesses in favor of foreign contractors from China, the UK or the U.S., draining opportunities away from the domestic economy.

The impasse at Koidu Limited serves as a stark reminder of the urgent need to reevaluate the current model. Observers point to past local empowerment successes, such as the late Moseray Fadika’s partnership with British-Austrian investor Frank Timis and John Bonor Sisay’s tenure at Sierra Rutile, where Sierra Leonean companies were actively engaged and benefited substantially.

As the Government of Sierra Leone continues negotiations over the lucrative Tonkolili North iron ore deposits, reportedly richer than the southern deposits currently operated by a Chinese firm, there are also growing calls to reconsider the role of foreign advisors managing key national resources, such as the Mineral Wealth Fund currently overseen by a Russian national.

Stakeholders insist that the time has come for Sierra Leone to assert full control over its natural resources and ensure that Sierra Leoneans are not only beneficiaries but also key players in the mining sector.

The Government is now being urged to initiate a comprehensive review of all existing mining agreements, with the aim of restructuring them in line with national interests. This includes provisions for local equity participation, stronger labor protections, environmental safeguards and a transparent framework for resource governance.

The people of Sierra Leone deserve better and a reformed mining sector could be a major step toward achieving economic justice and national prosperity.

  https://thecalabashnewspaper.com/calls-mount-for-overhaul-of-mining-contracts-amid-labor-crisis-at-koidu-limited/