Post a comment
Koidu Limited, one of Sierra Leone’s major diamond mining companies, has announced significant operational changes due to ongoing challenges in the global diamond market.
In a press release, the company stated that effective immediately, mining activities in the DZB-W area will be put on hold for the short to medium term, and production at the processing plant will be reduced in an effort to manage operating costs over the coming months.
According to Koidu Limited, the diamond market is facing severe challenges that are directly affecting its operations.
The company pointed out that the transition from the high-grade K1 ore body to the lower-grade K2 ore body has added financial pressure, leading to difficult decisions aimed at ensuring the company’s long-term survival.
The company’s austerity measures will also result in the temporary closure of certain areas and a reduction in workloads across several support departments.
As part of these measures, selected personnel will be sent home for the duration of this period. Koidu Limited, however, assured that permanent employees affected by the changes would continue to receive their basic salary, along with medical and transport allowances while at home.
Koidu Limited acknowledged the concern these developments might raise among employees and assured that the company is closely monitoring the financial situation. Regular updates will be provided to keep employees informed as the situation evolves.
“Our primary goal is to reduce costs and navigate through this challenging period until the diamond market recovers,” the company stated.
It also emphasized plans to resume mining activities in the DZB-W and other undeveloped areas once market conditions improve, leading to increased production at the plant.
The company called on all personnel to work together to overcome the challenges and help position Koidu Limited for a stronger future in the diamond industry.
