Koidu Holdings Reports $6-8 Million Production Loss Amid Ongoing Strike

By Kadijatu Bangura, Reporter D.S.

Koidu Holdings Limited has submitted a preliminary report to the Ministry of Mines and Mineral Resources, detailing the impacts of the ongoing industrial strike in Kono District, which has persisted for nearly five weeks. The company estimates production losses ranging from $6 million to $8 million as a result of the disruption.

Minister of Mines and Mineral Resources, Julius Mattai, confirmed the receipt of the report during a press briefing in Freetown. He expressed concern over the significant operational disruptions at the company’s diamond mine, which have gained public attention following support from First Lady Fatima Bio and the employees themselves. The strike was reportedly triggered by disagreements over wages and salary increments, reflecting a broader industrial dispute and financial standoff between the company’s workers and management.

“The company is deeply worried about the production losses incurred. This disruption affects not just their operations but also national export figures and overall economic output,” Minister Mattai stated. Koidu Holdings is recognized as one of Sierra Leone’s flagship mining operations, contributing approximately 12% of the country’s total export value and employing around 1,000 staff, primarily nationals. The mining sector’s export contribution has been notably volatile, plummeting from 8.8% to 2.3%, underscoring the industry’s instability.

Despite the ongoing strike, the company has managed to sustain some operations under a “Care and Maintenance” mode—a scaled-down approach aimed at preserving machinery and critical systems until full production can resume. “They realized that if most national staff return to work, they can still manage some level of production without completely shutting down,” Minister Mattai explained.

He also highlighted provisions in the revised Mines and Minerals Act, which allows licensed mining companies a 100-day notification period in the event of a strike or technical emergency. This legal framework enables companies to engage relevant authorities while undertaking precautionary or corrective measures. However, Minister Mattai clarified that labor-related grievances fall under the jurisdiction of the Ministry of Labour and Social Security.

“There’s a clear distinction in roles. When it comes to industrial actions triggered by salary disputes or working conditions, it’s the Ministry of Labour that takes the lead,” he emphasized.

The situation remains under review as stakeholders—including Koidu Holdings, government officials, and labor representatives—continue discussions aimed at resolving the standoff and restoring full operations.

For more information, contact Daily Scope Newspaper at dailyscopemedia@gmail.com.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *