Jobs in Jeopardy at Lesotho’s Key Diamond Mine

A crisis is unfolding in Lesotho’s diamond-mining heartland as the Storm Mountain Diamonds (Pty) Ltd (SMD) warns that its operations at the Kao Mine could cease without urgent intervention placing nearly 800 jobs and large swathes of local economic activity at serious risk.
What’s happening?

The Kao Mine is operated by Storm Mountain Diamonds, which is jointly owned by Namakwa Diamonds Limited (75 %) and the Government of Lesotho (25 %). The mine is located in the Butha-Buthe district.

In a statement dated mid-October 2025, SMD warned that without government support especially in respect of tax and royalty burdens the mine may be forced to shut operations.

Workers’ union Independent Democratic Union of Lesotho (IDUL) says that nearly 97 % of the mine’s workforce are citizens of Lesotho, and 34 % come from villages surrounding the mine.

The broader context: the global diamond market is weak, prices have fallen significantly and Lesotho’s mining sector is under severe pressure.

Why is this so critical?

The mine is one of Lesotho’s largest private employers. If operations halt, the impact on direct jobs, local procurement, and supporting businesses will be severe.

According to one report, the total economic significance of the mine is more than M1 billion (approx. US$57 million) in local economic activity. (While exact figure in Lesotho maloti not given in all sources, the correspondence to US$57 million was mentioned in the briefing.)

Given the high reliance on the mine in the region, a closure would have knock-on effects: families losing incomes, local shops and services losing customers, and the region’s economy contracting.

Royalties & tax burdens: SMD complains that the flat royalty rate applied even when the mine is loss-making adds cost layers it cannot sustain.

Predictability of investment conditions: The mine accuses the Lesotho Revenue Services (RSL) of not honouring prior mining agreements that guaranteed more stable conditions, thus undermining the investment climate.

Global market factors: The drop in diamond demand especially from major consumer markets and accompanying low prices are dampening profitability.

Cost structure & capital needs: SMD reports that despite an efficiency expansion (a High-Pressure Grinding Roll installation), it faces annual waste-stripping capital needs of around M150 million. Without that, ore reserves will be exhausted.

What is being done?

SMD has informed its workforce of possible cost-cutting measures, including a 30 % reduction in employment costs and a 20 % overall cost cut.

The union (IDUL) is calling on the government’s Ministry of Natural Resources and the Ministry of Trade, Industry & Business Development to immediately engage with SMD and negotiate solutions.

The mine remains operational for now but warns that without urgent lifelines, a shutdown is imminent.
what happens if it shuts down?

Direct job losses: ~800 workers employed by the mine could lose their employment.

Indirect impact: With many workers from surrounding villages, local businesses that serve them (shops, services, transport) will face reduced demand.

Regional economy: The Butha-Buthe district and adjacent areas stand to lose significant economic income tied to the mine’s operations and spend.

National investment climate: A closure could send negative signals to investors in Lesotho’s mining sector emphasising risk in royalty/tax unpredictability and commodity-market exposure.

Comments from the sides

May Rathakane, Secretary-General of IDUL: “For government to watch silently while so many livelihoods hang in the balance is a betrayal of the working class… Lesotho cannot claim to promote investment and industrialisation while suffocating its most productive sectors through bureaucracy and political bias.”

SMD Chairman Robert Cowley: In a memo he said “low diamond prices now appear to be permanent and the company must adapt… the possibility of closure has been actively considered.”

The plight of the Kao Mine is a stark illustration of how commodity-driven regions can face rapid economic distress when global markets shift, and domestic policy burdens accumulate. With hundreds of jobs and millions in local economic activity at stake, the next steps by both the mine’s owners and the Lesotho government could determine whether an important mining operation survives or becomes another employment and investment casualty.

The question now is: will the government intervene in time to shore up the mine and if so, on what terms? Operators and workers alike are waiting.

Source: DCLA

The Kao Legend Collection: A Rare Suite of Pink Diamonds from Lesotho

The Kao Legend Collection represents an extraordinary achievement in diamond cutting and curation. Cut from a single 108.39-carat pink diamond crystal unearthed at the renowned Kao Mine in Lesotho, this suite features seven magnificent pink diamonds each documented in detail by the GIA Monograph.

At the heart of the collection lies the Kao Legend, a 20.49-carat diamond graded Fancy Intense Purplish Pink by the Gemological Institute of America (GIA). The accompanying diamonds in the collection range in colour from Fancy Intense Purplish Pink to Faint Pink, showcasing a delicate and rare spectrum of pink hues.

What sets this collection apart is not only its shared origin and harmonious beauty but also the diamonds’ classification. All seven are Type IIa diamonds known for their exceptional chemical purity and rarity, comprising less than 2% of all natural diamonds. Type IIa pink diamonds are especially coveted for their remarkable clarity and vibrant colour saturation.

The Kao Mine, one of Lesotho’s most prominent diamond sources, has established a reputation for yielding high-quality pink diamonds. Alongside the Kao Legend, the mine also produced the celebrated Pink Eternity, a 47.80-carat gem of international acclaim.

For gemmologists and collectors alike, the Kao Legend Collection exemplifies nature’s artistry and the pinnacle of diamond excellence.

High-Value Recoveries Drive up Gem Revenue

Gem Diamonds saw revenue and profits increase in FY2024, as high-value recoveries more than made up for persistent downward pressure of the diamond market.

In its Full Year 2024 Results published today (13 March), the UK-based miner reported a 10 per cent increase in revenue to $154.2m, largely driven by the sale of 13 +100-cts diamonds from its Letseng mine, in Lesotho.

Underlying EBITDA almost doubled to $29.7m and profit for the year increase from $1.6m to $8.1m.

Exceptional sales included an 11 carat pink diamond that was sold for $45,537 per carat, a 63 carat Type IIa white diamond that was sold for $41,007 per carat (the highest per carat price of the year) and a 113 carat Type IIa white diamond that was sold for $39,345 per carat.

The number of carats recovered during the year fell 4 per cent to 105,012.

Clifford Elphick, CEO at Gem, said: “2024 was another challenging year for the diamond market with decreasing rough and polished diamond prices. Our relentless focus on factors within our control – cost containment, operational efficiencies and appropriate capital allocation, has yielded pleasing results.”

Looking to the future, the company expects the market to remain under pressure during the year, with signs of a modest recovery in diamond prices.

Source: DCLA

High Value Recoveries Boost Gem’s Revenue

Gem Diamonds today (29 January) reported a dip in quarterly revenue but a year-on-year increase of 10 per cent, boosted by a flurry of high-value recoveries.

The UK-based miner sold $152.8m of rough in 2024, compared to $139.4m in 2023. Sales in Q4 last year were $32.2m, down almost 25 per cent on Q3.

Gem’s Letseng mine, in Lesotho, is the highest dollar per carat kimberlite diamond mine in the world.

During the year Gem sold 13 +100-cts diamonds recovered during the year, compared with just five the previous year.

The mine has averaged eight +100-cts since it started operations 17 years ago.

Six diamonds sold for more than $1m during Q4, the company said, contributing $11.6m. The highest price achieved in the quarter was $45,077 per carat for a 3.52-carat pink diamond.

Average price per carat during FY2024 was $1 ,334, a 4 per cent increase on the previous year. Th e number of carats recovered fell 4 per cent to 105,012.

Source: DCLA

Gem Diamonds Reports Revenue Surge

Gem Diamonds says revenue for the three months to 30 September (Q3 2024) was $42.7m, a year-on-year rise of 36 per cent.

The company has seen above-average recoveries of +100-cts diamonds (13 so far this year compared to an historic average of eight) and other high-value diamonds from its Letseng mine, in Lesotho.

The highest price achieved during the quarter was $45,537 per carat for a 10.98 carat pink diamond.

The UK-based miner sold 26,617 carats, down 11 per cent year-on-year, but saw average per carat prices increase 18 per cent to $1,603.

Six diamonds sold for over $1m during the quarter, contributing $22.6m, and five +100-cts were recovered.

Letseng – 70 per cent owned by Gem and 30 per cent by the Lesotho government – is the highest dollar per carat kimberlite diamond mine in the world.

Total YTD 2024 sales are $120.5m, compared to $103m at the same point last year.

Source: DCLA

Gem Diamonds finds 126.2 carat stone at Letšeng mine

Africa focused miner Gem Diamonds has unearthed yet another large white diamond at its prolific Letšeng mine in Lesotho.

The 126.21 carat Type II white diamond is the twelfth greater than 100 carat precious stone mined this year at the operation, the company said.

Sign Up for the Precious Metals Digest

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure.

The Letšeng mine, owned 70% by Gem Diamonds, is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

The operation has a track record of producing large, exceptional white diamonds, which makes it the highest dollar per carat kimberlite diamond mine in the world.

Source: DCLA

Gem Diamonds Doubles its +100 carats Haul

Gem Diamonds has now recovered twice as many +100 cts diamond this year than during the whole of 2023.

The UK-based company today announced a 129.71 carat Type II white diamond from its Letseng mine, in Lesotho.

It’s the 10th +100 cts diamond of 2024. Historically the mine averages eight per year, but last year it recovered only five.

The spike in high-value recoveries has helped push up revenue at Gem. Earlier this month it reported a 9 per cent increase in its first half earnings to $77.9m.

Letseng 70 per cent owned by Gem and 30 per cent by the Lesotho government is the highest dollar per carat kimberlite diamond mine in the world.

Pic courtesy Gem Diamonds, shows the 129.71 ct stone.

Source: DCLA

Gem Diamonds digs up 145 carat diamond in Lesotho

Africa-focused miner Gem Diamonds has unearthed a 145.55 carat, Type II white diamond at its prolific Letsěng mine in Lesotho.

The diamond, recovered on August 3rd, is the ninth greater than 100-carat precious stone recovered this year at the operation, the company said.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. Boart diamonds are stones of low quality that are used in powder form as an abrasive.

The Type II, white diamond is the ninth greater than 100-carat precious stone recovered this year at the Letsěng mine.

The Letšeng mine is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

Diamond miners are going through a rough patch as US and Chinese demand for diamond jewellery continues to be weak and the popularity of cheaper laboratory grown diamonds continues to rise.

In 2015, man-made diamonds had barely made an appearance as a competitor to natural diamonds. By last year, these stones accounted for more than 10% of the global diamond jewelry market, according to industry specialist Paul Zimnisky.

The market values of small to medium diamond mining companies, including Canada’s Lucara, South Africa’s Petra, and Gem Diamonds itself, are around $100 million or less. This is only about a third or a fourth of the price the large stones they aim to find may be worth.

The news comes as competitor Petra Diamonds postponed the sale of rough stones mined at its South African operations that would have been offered during the August/September event of the year, amid low demand.

Source: DCLA

Gem Diamonds unearths 123 carat rough diamond in Lesotho

Letšeng is the world’s highest dollar per carat diamond mine.

Gem Diamonds has announced the recovery of a 123.2 carat type 11 white diamond at its Letšeng mine in Lesotho.  

This is the eighth greater than 100 diamond found at the operation in 2024, the company said.  

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. Boart diamonds are stones of low quality that are used in powder form as an abrasive. 

The prolific Letšeng mine is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines. 

The Letšeng mine is famous for the production of large, exceptional white quality diamonds, making it the highest dollar per carat kimberlite mine in the world, Gem said.  

Source: DCLA

How a 910ct. Rough Became a Sparkling Van Cleef Collection

  

The Baselworld fair has received much criticism in recent years, but one of the final shows before its public implosion appears to have facilitated a diamond deal that counts among the biggest in history.

Antwerp-based manufacturers Taché and Samir Gems came to the March 2018 exhibition with the exquisite Lesotho Legend, a 910-carat, type IIa diamond they had bought together from Gem Diamonds for $40 million earlier that month. At the time, jewelers such as Graff and Harry Winston dominated the big-stone market. Displaying the massive rough at the prestigious Swiss event could help drum up broader interest in the category, Taché and Samir believed.

“We felt that the market was a bit saturated between one or two players,” says Jean-Jacques Taché, managing director for sales at Taché, from his office in Tel Aviv, Israel. “So we thought, let’s bring it to Basel, let’s…showcase the [rough], and let’s see the reactions.”

Plenty of visitors wanted selfies with the stone, which came from the famous Letšeng mine in Lesotho. Some suggested buying a sliver of the piece — polished of, say, 5 to 20 carats, Taché recalls. However, “none of them were really committed at that point to enter into a venture.”

The exception was Van Cleef & Arpels, a Richemont-owned luxury brand that, Taché explains, had been somewhat pulling back from big stones in recent years.

“From the minute they saw it, [Van Cleef] started to talk about the idea that they had,” the executive adds. The timing was perfect: The luxury brand had just finished a ruby collection and was seeking a new project on which to spend a few years. “Sometimes you need a lot of things to happen at the same time in order to make it a success.”

The buying executive representing Van Cleef needed approval from Nicolas Bos, the brand’s CEO, and the Richemont team. Not long after the event, Taché, Samir and Van Cleef signed an agreement calling for the jeweler to buy the final polished. The condition was that the finished goods met the French house’s high quality criteria.

Long wait

Only this month did Van Cleef reveal the finished jewelry, more than four years after the initial pitch. The result was a unique collection of 25 Mystery Set jewels featuring 67 D-flawless diamonds. The largest is an oval, 79.35-carat stone that takes pride of place in a necklace called Atours Mystérieux, meaning “mysterious attire.” The smallest is 0.29 carats. The parties have not disclosed the polished sale price.

Taché and Samir both took heavy risks by splurging on the rough back in 2018. (Gem Diamonds publicly named Samir as the buyer: As is often the case, a miner only invoices one entity, but the purchase was really a 50:50 partnership.)

The two companies have a long-standing collaboration, having also bought the 341.9-carat Queen of Kalahari together from Lucara Diamond Corp. a few years earlier. They sold that polished to Chopard. Samir has its expertise in purchasing large rough stones; Taché specializes more in relationships with the top jewelry brands.

“We’re the most successful Jewish-Indian partnership on the market, by far,” says Taché.

They outsourced the cutting and polishing to Diamcad, an Antwerp firm that also manufactured the Lesedi La Rona for Graff. The goods went for grading at the Gemological Institute of America (GIA) in New York, where all the stones received Diamond Origin Reports stating that they were from the Lesotho Legend.

Van Cleef took delivery of the polished as each stone was ready between January 2019 and March 2020, Taché notes. However, Covid-19 delayed the launch, as Van Cleef had been hoping to hold roadshows.

          Jean-Jacques Taché and Anjal Bhansali

Quality over size

The manufacturers agreed to include Van Cleef throughout the process, including in the planning and design. The Taché and Samir teams even traveled with Van Cleef’s Bos to Lesotho in May 2019 to experience the Letšeng mine and learn about the local community there.

The brand would accept only flawless goods, so quality became a higher priority than size. The planning process, which took about seven months in 2018, saw the parties review around 180 possible combinations of outcomes. None of them included any “monster” stones, they note.

“Instead of 67 stones, you could also have a model with probably 12 pieces only, but [it would have been] much less interesting in terms of creation,” Taché continues.

There were other complicating factors. Van Cleef tends to avoid round and heart-shaped diamonds. It also wanted matching pairs: “Practically every stone in this collection between 10 and 30 carats is a couple,” he points out.

“If we went for something which was 100-carats-plus, we would have had to go into the VS range,” comments Antwerp-based Anjal Bhansali, managing director at Samir. The team even broke up a stone of roughly 75 carats into two matching stones weighing around 30 carats each, Bhansali reveals.

Boost for big stones

The manufacturers hope the collection will succeed in reinvigorating the large-diamond sector, expanding it beyond the traditional two giants.

“The goal is to create more awareness for big stones in the market and to bring in new players,” Taché concludes. “We started it with Chopard. We [are continuing] this now with Van Cleef.”

It’s unclear whether the Basel show will ever return. However, everyone involved in the Lesotho Legend project will agree that the 2018 edition was well worth it.

 Atours Mystérieux necklace.

Source: DCLA

Lesotho joins the diamond league

                              Lesotho rough diamonds

The auction came as the Mountain Kingdom explores how to ensure diamond mines are at least 51 percent-owned by locals, which will include the entry of small-scale miners into the sector.

Lesotho’s diamonds are usually auctioned in Antwerp, Belgium. Buyers from as far as the Netherlands and Israel were joined by those from neighbouring South Africa and locals at the inaugural auction.

Launched by Deputy Prime Minister Mathibeli Mokhothu, the auction sold off diamonds collected from the public and those confiscated by the police in recent months. Of the 493 diamonds auctioned, 140 were voluntarily handed over by the public while 353 were confiscated by the police.

The government offered an amnesty from November 2020 to March 2021 to anyone in possession of undocumented diamonds, allowing them to hand the gems over without fear of prosecution. The auction was held from May 27 to 29.

Mining Minister Serialong Qoo said all revenue from the confiscated diamonds would be forfeited to the state and proceeds from gems voluntarily handed to the government would be paid into the holders’ bank accounts.

“I am very delighted that this day has finally come after it was initially delayed by the COVID-19 pandemic. This is a big move as parliament has now embraced the idea of letting Basotho mine with their picks and shovels legally,” said Minister Qoo.

Mining Ministry spokesperson Ms ‘Makananelo Motseko this week said a final report on the auction was being compiled and would be made public.

At the auction, Deputy PM Mr Mokhothu said, “We hope this local auctioning will spell the end for illegal diamond dealing as trade will be done securely and legally. This occasion gives me hope that soon, all of Lesotho’s diamonds will be sold in-country and benefit it economically.”

He also said Lesotho should move towards ensuring that at least 51 percent of shareholding in the diamond mines is held locally while investors would hold the remaining 49 percent.

Source: DCLA

Lesotho joins the diamond league

                              Lesotho rough diamonds

The auction came as the Mountain Kingdom explores how to ensure diamond mines are at least 51 percent-owned by locals, which will include the entry of small-scale miners into the sector.

Lesotho’s diamonds are usually auctioned in Antwerp, Belgium. Buyers from as far as the Netherlands and Israel were joined by those from neighbouring South Africa and locals at the inaugural auction.

Launched by Deputy Prime Minister Mathibeli Mokhothu, the auction sold off diamonds collected from the public and those confiscated by the police in recent months. Of the 493 diamonds auctioned, 140 were voluntarily handed over by the public while 353 were confiscated by the police.

The government offered an amnesty from November 2020 to March 2021 to anyone in possession of undocumented diamonds, allowing them to hand the gems over without fear of prosecution. The auction was held from May 27 to 29.

Mining Minister Serialong Qoo said all revenue from the confiscated diamonds would be forfeited to the state and proceeds from gems voluntarily handed to the government would be paid into the holders’ bank accounts.

“I am very delighted that this day has finally come after it was initially delayed by the COVID-19 pandemic. This is a big move as parliament has now embraced the idea of letting Basotho mine with their picks and shovels legally,” said Minister Qoo.

Mining Ministry spokesperson Ms ‘Makananelo Motseko this week said a final report on the auction was being compiled and would be made public.

At the auction, Deputy PM Mr Mokhothu said, “We hope this local auctioning will spell the end for illegal diamond dealing as trade will be done securely and legally. This occasion gives me hope that soon, all of Lesotho’s diamonds will be sold in-country and benefit it economically.”

He also said Lesotho should move towards ensuring that at least 51 percent of shareholding in the diamond mines is held locally while investors would hold the remaining 49 percent.

Source: DCLA

“The Lesotho Legend” sells for $40 million

Gem Diamonds recovered the 910 carat rough diamond in January.
The world’s fifth biggest gem quality diamond ever found has sold for $40 million , the company that found the massive rough diamond reported.

Gem Diamonds mined the D colourType IIa rough diamond at its flagship Letšeng mine in Lesotho.
The Lesotho Legend was purchased by an anonymous buyer in Antwerp, the company said.

Prior to “The Lesotho Legend,” the largest rough diamond recovered at Letšeng was a 603 carat named Lesotho Promise.

Source: DCLA 

“The Lesotho Legend” sells for $40 million

Gem Diamonds recovered the 910 carat rough diamond in January.
The world’s fifth biggest gem quality diamond ever found has sold for $40 million , the company that found the massive rough diamond reported.

Gem Diamonds mined the D colourType IIa rough diamond at its flagship Letšeng mine in Lesotho.
The Lesotho Legend was purchased by an anonymous buyer in Antwerp, the company said.

Prior to “The Lesotho Legend,” the largest rough diamond recovered at Letšeng was a 603 carat named Lesotho Promise.

Source: DCLA