By: Kadijatu Bangura, Daily Scope Reporter
Sierra Rutile Limited plans to lay off 339 employees as it seeks to reduce operating costs and stabilize the business amid falling returns and broader economic headwinds.
The mining firm, now wholly owned by Leone Oil Company, said the redundancy exercise will affect 213 general staff, 80 senior staff, and 46 management staff. Management has notified the Ministry of Labour and Employment, triggering legal consultations under Section 82 of the Employment Act 2023 and Article 27 of the Mining Collective Bargaining Agreement Gazette 2025.
Deputy Minister of Labour and Employment Dumbuya said the government’s role is to protect the interests of both workers and management while facilitating dialogue. Deputy Director of Labour and Employment Abdulai Conteh confirmed that the ministry has begun mandatory engagement with workers and other stakeholders.
Workers’ Union Secretary General Ahmed MK Josiah welcomed the ministry’s involvement but said employees should have been informed earlier.
“Redundancy has happened before in 2017 and 2024. While we understand the situation, earlier communication would have helped workers prepare better,” he said.
Some employees also raised concerns about cuts to staff benefits and operational changes since new management took over.
Chief Executive Officer Lima Suffian Kargbo said the decision was driven by financial sustainability. The company currently spends about $2.5 million a month on fuel and $1.8 million on logistics, he said, while returns remain limited.
“We are not happy about this decision, but if we do not cut down costs, the company risks collapse,” Kargbo said. “Our purpose here is to engage directly with workers and prepare minds for the eventuality.”
He added that global commodity price pressures have forced mining firms worldwide to restructure. Under the plan, about 24% of general staff, 35% of senior staff, and 46% of management will be affected, with the process expected to be completed before the end of May. Operations are scheduled to resume at a reduced scale in June.
The ministry assured that all affected workers will receive full redundancy benefits as required by law. Deputy Minister Dumbuya said the government would continue to act as an impartial mediator to ensure the process is fair and orderly.
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