Press Statement - Genesis of the Koidu Holdings Crisis

Press Statement - Genesis of the Koidu Holdings Crisis

Kimberlite Mining Threatens Peace and Security in Kono - The government must regulate corporate mining now.

The Campaign for Just Mining, a coalition of civil society organizations spearheaded by the Network Movement for Justice and Development (NMJD), working on mining, human rights and environmental issues has found out that Koidu Holdings Limited (formerly Branch Energy) has commenced blasting of the Koidu Kimberlite pipe even before the completion of the Environmental Impact Assessment. This does not only negate the Mines and Minerals Act of 1994, the Environment Protection Act of 2000 and the set standards of the World Bank, but also abrogates the fundamental rights of people in the affected communities. This could be a potent factor to derail and undermine peace and security, and ultimately national development.

This exercise (blasting) which is carried out every week has adversely affected the day-to-day activities of the people: schools and businesses in the environs of the Koidu Kimberlite pipe are completely disrupted each time blast9ng is going on, residents are forced to flee their homes for safety resulting in the loss of personal effects. Over and above all, one such blasting had earlier caused damage on one building and the shock caused by reverberating sound of blasting has far reaching health implications on the people.

Also, the Resettlement Action Plan (RAP) for households directly affected by the blasting has so far proved to be a farce. Since the commencement of the programme, only ten sub-standard, poorly constructed and incomplete houses have been built for the affected communities with no basic facilities. As a protest to the above inhuman treatment, the people have refused to relocate.

Furthermore, the method which the consultants for the Koidu Holdings Limited used in carrying out its operations including the Environmental Impact Assessment is questionable since most of the key stakeholders were not only excluded, but some were harassed and embarrassed resulting in a court case. By all standards, Environmental Impact Assessments should be participatory with all stakeholders making their inputs so as to ensure a transparent and accountable process. But this procedure was not followed by the Koidu Holdings Limited. In fact, it is most disturbing to learn that even the Kono Peace Diamond Alliance that has a critical role to play in all of this was completely excluded from the process and has never accessed the report.

With all these negative developments, the Campaign for Just Mining has some serious doubts as to whether Koidu Holdings Limited is willing and committed to the Peace, Security and Development of Kono as a member of the Peace Diamond Alliance as well as subscribe to the new international campaign, which calls on corporate mining entities to ensure corporate social responsibility.

Therefore, since the Government of Sierra Leone has a constitutional responsibility and moral obligation to protect and promote the interests of the citizenry, the Campaign for Just Mining is calling on the appropriate government ministries and departments to use existing legislations as a tool to immediately stamp out these unproductive and inimical practices to avert a looming crisis of high proportion.

Dated January 21, 2004

For more information, please contact Network Movement for Justice and Development, 8 King Harman Road, Freetown, Telephone Numbers: 223378/229937.

Editor's Note: The press statement was widely published in local newspapers and radio stations. This was followed by a letter addressed to the Ministers of Mines and Mineral Resources and Lands, Housing and the Environment to specifically draw their attention to the issues raised in the release. Copies of the letter were sent to key stakeholders in the industry, including CEMMATS and Koidu Holdings Limited. The reaction of both government and Koidu Holdings was very hostile and intimidatory.