Koidu Limited Suspends Operations

By George M.O. Williams

Koidu Limited has announced the temporary suspension of its operations, citing unresolved industrial actions, external political interference, and a lack of decisive government intervention.

In a letter addressed to the Ministry of Mines and Mineral Resources, Julius D. Mattai on Tuesday, March 25, 2025, the Director of Koidu Limited, Gustaf Fredrik Bodin has notify the Minister that in accordance with the Mines and Minerals Act, 2022, the company has immediately transition its operations into a care and maintenance phase due to emergency circumstances culminating from unresolved illegal industrial actions severely impacting its operational viability and employee safety.

According to the letter, as a result of direct consequence despite the intervention of the Ministry of Employment, Labour and Social Security to amicably resolve the issues, the company continued operations have become untenable.

The letter further stated that, the company has become unsustainable due to lack of decisive action from the Ministry of Employment, Labour and Social Security in addressing these clear violations of provisions of the primary legislation regulating employment sector, necessitating the invocation of its rights under the Mines and Minerals Development Act, 2022.

In addition, the letter also cited that several reports from the company’s personnel confirmed that employees who wish to resume their duties are facing severe intimidation and threats, effectively preventing their lawful right to work.

Koidu Limited said the situation has been further exacerbated by external political interference, notably by Her Excellency the First Lady Dr. Fatima Maada Bio, apparently advising workers against returning to work.

In addition, the company refers to the Industrial Relations and Trade Union Act, 2024, as its makes provisions for employer’s rights in response to unlawful strikes, including the ability to impose a lockout.

In exercising of that rights, the company said due to the extreme nature of the current disruptions and external interference, they have opted for a transition to care and maintenance as a more prudent course of action.

The letter further mentioned that in line with the provisions of the Mines and Minerals Development Act No.16, 2022, on the suspension of production of License holders, the circumstances enumerated herein forms the emergency circumstances on which the notice is issued.

Holistically, the company cited the ongoing industrial action is clearly illegal as it contravenes multiple provisions of the Industrial Relations and Trade Union Act, 2024, which mandates formal notice, amongst other condition precedents and qualifying credentials, to be met for a strike action to be in compliance with the said Act.

Koidu Limited noted that its employees and their union representatives have failed to adhere to these requirements, which renders their actions unlawful.

The company indicated that they acknowledged provision in the Employment Act, 2023, which further underscores the employer’s responsibility to ensure a safe working environment, a requirement which the company said has become unattainable due to these unlawful disruptions and the growing tensions.

The company cited that pursuant to the Industrial Relations and Trade Union Act, 2024, any industrial dispute should be formally reported to the Commissioner of Labour for resolution.  “Despite multiple attempts to resolve this issue through the Ministry of Employment, Labour and Social Security in accordance with the Industrial Relations and Trade Union Act, 2024, the dispute remained unresolved,” the company said in the letter

However, the company seek the Ministry’s immediate and authoritative intervention to rectify this situation, ensuring compliance with statutory provisions and restoring conditions suitable for the lawful and safe resumption of operations.

The company assured all of its complete cooperation and remain ready to engage constructively with your Ministry of Mines and relevant stakeholders.

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