Freetown, Sierra Leone – The fight over the Koidu diamond mine has escalated sharply, with former employees launching a $49 million lawsuit in Sierra Leone’s High Court while Koidu Limited seeks to move the dispute out of the country through international arbitration.
In dueling statements this week, the two sides outlined starkly different strategies: workers are pursuing justice through the courts, while the company attempts a back-door approach by hiring a London law firm to negotiate directly with the government.
Workers: “This Is About Our Rights, Not Politics”
More than 900 dismissed employees announced their claim for $49,085,147.63 plus interest and damages, alleging two key violations:
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Exchange rate manipulation – wages paid at arbitrary rates, allegedly breaching the Bank of Sierra Leone Act (2019).
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Denial of benefits – refusal to pay rightful entitlements under the Employment Act (2023) to staff who resigned shortly before the mass dismissals.
The workers were clear that this is an industrial dispute, not a political one:
“The Government of Sierra Leone has no authority to negotiate on our behalf. All negotiations concerning us must be conducted exclusively through our solicitors,” their statement read.
The High Court has already granted an injunction freezing Koidu’s assets, while workers’ lawyers prepare to escalate the matter to regional and international human rights bodies.
Company: $100M Arbitration Threat
Koidu Limited, meanwhile, revealed it has hired Mishcon de Reya LLP, a top London law firm, to pursue arbitration against the Sierra Leone government. It accuses the state of breaching its Mining Lease Agreement by failing to stop “illegal strikes” and by allowing First Lady Fatima Bio to “incite unrest.”
The company is demanding up to $100 million in damages, threatening binding arbitration in London within three months if no settlement is reached.
Koidu insists it has not shut down the mine but placed it under “care and maintenance,” guarded by state security, with operations to resume “once legal issues are resolved.”
A Back-Door Strategy?
Union representatives argue that arbitration abroad is designed to bypass accountability and sideline workers.
“This was always an industrial dispute, not a government matter,” said a union source. “By shifting blame to the state and cutting back-room deals with officials, Koidu is trying to hoodwink workers out of their benefits.”
The Bigger Picture
The clash has become one of the most significant corporate showdowns in West Africa. On one side, the workers’ lawsuit, grounded in domestic law, transparent, and public. On the other, the company’s foreign arbitration threat, rooted in closed-door negotiations and political leverage.
With Koidu’s assets frozen and lawsuits moving both at home and abroad, the confrontation now raises broader questions: will justice for Sierra Leonean workers be delivered in Freetown’s courts, or decided in distant arbitration halls beyond their reach?
