By Mahmud Tim Kargbo
Thursday, 15 May, 2025
It is both accurate—and urgently relevant—that Octea Limited’s mining agreement with the Government of Sierra Leone is set to expire on 22 July 2030. This lease governs the Koidu Kimberlite Project, operated by Koidu Limited, a subsidiary of Octea. Originally signed in 1995 and extended through an amended agreement ratified in October 2010, the lease granted Octea a 20-year operational term from its effective date. This timeline is corroborated by Sierra Leone’s National Minerals Agency (NMA) and confirmed in the company’s own filings (https://www.nma.gov.sl).
The agreement includes a renewal clause allowing for an extension of up to 15 years, contingent upon mutual consent and full compliance with the original lease terms. If renewed, Octea could retain control over the mine until 2045, potentially locking in another generation of diamond extraction from the Kono District.
As the 2030 deadline approaches, Sierra Leone stands at a pivotal crossroads. The lease expiry presents an unprecedented opportunity to reshape the extractive sector—ensuring meaningful benefits for local communities, environmental accountability, and national economic growth. However, rather than engaging transparently in a lease review process, Octea has escalated legal threats—most notably, against First Lady Fatima Bio, who publicly expressed solidarity with protesting mineworkers in Kono.
A PATTERN OF EXPLOITATION, NEGLECT AND RESISTANCE
Octea has long faced accusations of exploiting labour, neglecting community welfare, and damaging the environment. Human Rights Watch, independent journalists, and civil society groups have documented dangerous working conditions, underpayment, and pollution associated with Octea’s operations.
These issues contravene Sierra Leone’s Mines and Minerals Act 2009, which explicitly states in Section 106:
“Every holder of a mining lease shall carry out mining operations with due regard for the safety, health and welfare of persons, and shall contribute to the development of the local community.”
The company’s behaviour also violates continental policy norms established under the African Mining Vision, adopted by the African Union in 2009. This policy promotes:
“Transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development.”
Despite repeated petitions and grievances from local residents, Octea has not demonstrated any willingness to engage with the affected communities or government institutions. This ongoing silence reflects a business model engineered to extract value without corresponding accountability.
LEGAL THREATS AS DIVERSIONARY TACTICS
In a concerning development, Octea Limited issued legal threats against First Lady Fatima Bio after she publicly supported striking workers in Kono. This legal action came shortly after a major protest and amid rising public scrutiny of the company’s activities and lease status.
The timing suggests a strategy of deflection. Legal analysts liken this tactic to what is known internationally as Strategic Lawsuits Against Public Participation (SLAPPs), defined as:
“A misuse of the judicial process to intimidate and silence critics by burdening them with the cost of a legal defence.”
Rather than defending its compliance record or engaging in a lawful renegotiation process, Octea appears to be intimidating high-profile figures while distracting from core issues of legality, ethics, and governance.
DODGING A COSTLY LEASE RENEGOTIATION
Octea’s conduct suggests it may be attempting to avoid a thorough and potentially expensive lease renegotiation. If found non-compliant with existing obligations, the Government of Sierra Leone is entitled to:
Increase royalty rates (currently 6.5 percent for precious stones),
Enforce environmental rehabilitation requirements,
Strengthen local employment and investment guarantees,
Demand new signing bonuses or equity contributions.
These powers are supported by Section 140 of the Mines and Minerals Act 2009, which provides:
“The Minister shall not renew a mining lease unless he is satisfied that its renewal is in the interest of the economy of Sierra Leone.”
Renewal is, therefore, conditional—not guaranteed—and must demonstrably serve the public interest.
OFFSHORE NETWORKS AND THE QUESTION OF SOVEREIGNTY
Octea’s opaque corporate structure poses grave concerns for fiscal sovereignty and transparency. Investigations by the International Consortium of Investigative Journalists (ICIJ), as part of the Panama Papers leak, revealed Octea’s link to a web of offshore entities in the British Virgin Islands, ultimately controlled by Israeli billionaire, Beny Steinmetz. These arrangements allow Octea to obscure ownership, avoid taxation, and transfer profits abroad (https://offshoreleaks.icij.org).
This secrecy contradicts regional standards. The ECOWAS Directive on the Harmonisation of Guiding Principles and Policies in the Mining Sector calls for:
“Transparent and equitable allocation of mining rights, effective fiscal regimes, and environmental and social protection.”
Moreover, Sierra Leone’s 1991 Constitution, Chapter II, Section 7, mandates the state to steward its resources for public good:
“The natural resources of the country shall be utilised in a manner designed to benefit the people of Sierra Leone.”
Octea’s offshore strategies stand in sharp contrast to these constitutional and regional obligations.
THE 2030 DEADLINE: A MOMENT OF RECKONING
The expiry of Octea’s mining lease in July 2030 marks a crucial opportunity. For the people of Kono, it symbolises a chance to demand justice and renewal. For the government, it is a constitutional and patriotic obligation.
Any renewal must be based on a new legal and fiscal framework that prioritises:
Transparent and competitive licence tendering,
Environmental restoration plans,
Equitable community development,
A forensic audit of past operations and financial compliance.
Failure to act would entrench extractive injustice and perpetuate the economic disenfranchisement of Kono’s people.
STRATEGIC MOTIVES BEHIND ESCALATING TENSIONS
Beyond its current legal tactics, Octea’s broader actions indicate deeper strategic calculations—both financial and geopolitical—that are increasingly common among multinational mining companies operating in the Global South.
Pre-empting nationalisation pressure
Amid growing African movements for resource sovereignty, Octea may fear that Sierra Leone could follow countries like Tanzania, Guinea, and Zambia in reclaiming strategic mineral assets. Octea’s offshore setup and tax record make it particularly vulnerable to such measures. By escalating tensions, the company may aim to portray itself as a victim of political interference—thus strengthening its hand in potential arbitration.
Positioning for international arbitration under BITs
Octea’s affiliations with entities in the British Virgin Islands, Cyprus, and Israel could allow it to invoke Bilateral Investment Treaties (BITs). These treaties permit foreign companies to challenge state actions at tribunals such as ICSID. Legal threats and claims of persecution may be intended to lay the groundwork for such action if the lease is not renewed or assets are frozen.
Avoiding tax exposure and forensic audits
As 2030 approaches, public demand for a forensic audit of Octea’s tax and royalty history has grown. Concerns include transfer pricing, thin capitalisation, and underpayment of dues. A 2016 joint report by the African Development Bank and Global Financial Integrity estimated that Africa loses over 50 billion US dollars annually through illicit financial flows, mostly from extractive sectors. Legal distractions may be a tactic to delay exposure and enforcement.
Influencing political timing and policymaking
Octea’s current strategy may also be aimed at exploiting Sierra Leone’s political cycles—whether parliamentary oversight, elections, or regulatory reform windows. By generating controversy now, the company could seek to extract concessions or fast-track a favourable renegotiation before public or political momentum builds.
A CALL TO ACTION
Octea Limited’s pattern of legal aggression, offshore secrecy, and strategic deflection is no coincidence. It is part of a deliberate plan to evade scrutiny, delay lease renegotiation, and exit with impunity.
The Government of Sierra Leone must act now to defend its constitution, protect its people, and reclaim sovereignty over its natural resources. The Constitution, national mining laws, and international charters all support such action.
The 2030 lease expiry is not just a date—it is a line in the sand.
Kono’s diamonds must enrich Sierra Leone—not be spirited away through offshore accounts and legal loopholes.
If this moment is missed, the story of Kono will remain a tragedy of lost opportunity, where immense natural wealth continues to leave behind only dust, disillusionment, and despair.
REFERENCES
National Minerals Agency of Sierra Leone: https://www.nma.gov.sl
Mines and Minerals Act 2009 (PDF): https://www.nma.gov.sl/wp-content/uploads/2020/01/The-Mines-and-Minerals-Act-2009.pdf
African Mining Vision: https://au.int/en/ti/amv/about
ECOWAS Mining Directive: https://ecowas.int/document/directive-on-the-harmonization-of-guiding-principles-and-policies-in-the-mining-sector/
ICIJ Offshore Leaks Database (Panama Papers): https://offshoreleaks.icij.org
Constitution of Sierra Leone (1991): https://statehouse.gov.sl
African Development Bank and Global Financial Integrity Report: https://www.gfintegrity.org/report/illicit-financial-flows-to-and-from-15-developing-countries/