A freezing order by Sierra Leone’s Court of Appeal, in place since July 17 and launched as part of an ongoing rights abuse lawsuit against the country’s largest diamond producer, has been extended on Monday by yet another week in order to prevent Koidu Ltd from selling or disposing of its assets.
The order followed complaints that essential mining equipment was being removed from the company’s industrial mine in Koidu, the eastern Kono District. The mine has been closed since March.
The lawsuit was filed in 2019 by Marginalised Affected Property Owners (MAPO), a Sierra Leonean NGO, against Koidu Limited, its parent company Octea Limited, and ten affiliates and directors. The group accuses the company of “polluting the environment, degrading agricultural land, and destroying homes and livelihoods,” while failing to provide adequate compensation. Their case was dismissed in 2022 by Sierra Leone’s High Court but is currently under appeal.
The dispute intensified after residents filmed heavy machinery being moved out of the mine in early May. In a May 5 letter to minister of labour Mohamed Rahman Swaray, the Koidu Limited Workers Union said that “over 17 pieces of vital mining equipment had been moved out of the mine,” calling the action one that “threaten[s] the mine’s ability to resume operations.”
On March 25, the company announced it was placing the mine into care and maintenance, citing “emergency circumstances culminating from unresolved illegal industrial actions severely impacting our operational viability and employee safety,” in a notice seen by OCCRP.
The company accused Sierra Leone’s First Lady, Fatima Bio, of inciting unrest when she joined striking miners in Koidu earlier that month. The workers, who first protested last summer over alleged unfavorable exchange rates in their salary calculations, renewed their demands in March, calling for “a pay rise” and “better working conditions.” The First Lady later threatened to storm the site if those demands were not met.
In a legal notice served on May 6, Koidu Limited accused the First Lady of causing revenue losses of $16 million. The notice demanded $20 million to cover recommissioning costs and the cessation of threats against the company, warning that it would otherwise launch legal proceedings in both local and international courts.
Responding to the situation, Koidu Limited CEO Dag Cramer told OCCRP, “Certain equipment and trucks were removed, because we were worried they were going to storm the mine.” He added, “The bulk of the kit that was removed was stuff that was on lease with Yazbeck, the Volvo guy in Sierra Leone. And then we’ve parked some of the stuff in various places that we would use if we go back.”
The mine’s future remains uncertain. Last week, Africa Confidential reported that the mine would remain closed for the foreseeable future. With Koidu Limited’s negotiations with Sierra Leone’s government reaching a deadlock, the company claimed they lack sufficient capital to recommence mining operations – supposedly caused by a months-long shutdown.Â
The First Lady has previously accused Koidu Limited of orchestrating a smear campaign in response to an OCCRP investigation that revealed luxury property purchases by her and her family in The Gambia using funds of unexplained origin. She claimed the investigation was part of a plot against her by the company.
