Gem Diamonds, owner and operator of the Letšeng diamond mine in Lesotho, released a statement on Monday saying it did not anticipate any impact on operations from the political crisis in the tiny land-locked nation. “Gem Diamonds Ltd (GEMD) has seen media reports of army activity in Maseru, Lesotho but, at this stage, our management in Lesotho report that Maseru is calm and there is no disruption whatsoever at the company’s Letšeng mine which is situated some 4 hours from Maseru in the mountains. It is not anticipated that there will be any impact upon operations at Letšeng nor upon any of the company’s sales and marketing operations in respect of the Letšeng production.”
Prime Minister Thomas Thabane fled Lesotho for South Africa on Saturday after the military in Lesotho disarmed police in the capital, Maseru, in what the prime minister called a military coup.
Talks between the different factions mediated by South African President Jacob Zuma appeared to have some success with Lesotho’s leaders agreeing to a roadmap with a “clear timeline” to re-open parliament.
Since it took control in 2006 the mine the company has produced four of the top 20 largest white gem quality diamonds on record.
The Letšeng mine, located in the Maluti mountains in the Kingdom of Lesotho at an average elevation of 3 100 m above sea level, is one of the highest diamond mines in the world. The mine has achieved the highest average dollar per carat of any kimberlite diamond mine in the world, with its regular production of large, top-quality diamonds.
In August 2011, a 550 ct white diamond, the Letšeng Star became the fourth major recovery at Letšeng since Gem Diamonds’ 2006 takeover. It was preceded by the 478 ct Leseli la Letšeng (‘Light of Letšeng’) white diamond in 2008, the 603 ct Lesotho Promise white diamond in 2006, and the 493 ct Letšeng Legacy white diamond in 2007. Add the 601 ct Lesotho Brown, recovered in 1960, and Letšeng has produced five of the 20 largest documented rough white gem diamonds on record.
GEMD acquired Letšeng in July 2006. The Group owns 70% of the mine in partnership with the Government of the Kingdom of Lesotho, which owns the remaining 30%.
Letšeng processes ore from two kimberlite pipes, Main and Satellite, both bearing extremely low grade ore (under 2 ct/100 t), as well as from existing stockpiles. Since its acquisition, Letšeng’s annual production has risen from 55,000 ct in 2006 to 95,053 ct in 2013, with a peak of 114,350 ct produced in 2012.