Letseng Diamonds

Diamonds in the sky

Nestled high in the breathtaking Maluti Mountains of the Kingdom of Lesotho in Southern Africa is diamond mining com­pany, Letšeng Diamonds, part of the Gem Diamonds Group.  Diamonds produced at the Letšeng Mine sell for the highest price per carat of any kimberlite mine. Around 90 per cent of the diamonds recovered at the Letšeng Mine are gem quality which achieve an average price per carat of US$1,900—an incredible 20 times the industry average.

Over the years, Letšeng Mine has recovered four of the world’s 20 largest rough diamonds. From the initial discovery of the mine in 1957 and the small mining operation of the 1960’s, diamonds such as these exceptional discover­ies have firmly established the Letšeng Mine amongst the diamond mining elite.

IRJ spoke with Mazvi Maharasoa, CEO of Letšeng Diamonds, to find out what is next for the company that produces these “diamonds in the sky”.

Locating Letšeng and acquiring the mining lease

The story of Letšeng Diamonds begins when the company was formed in the mid-1990s. In 1999, the mining lease for the Letšeng Mine was ac­quired, during which time South African company JCI Gold was the majority shareholder.

The Letšeng Mine, situated roughly 3,100m above sea level along the Maluti Mountain Range in the Kingdom of Lesothom, took a further five years to come into commercial production in 2004. Maharasoa joined Letšeng in 2007 as the Company’s Resident Director. She was then ap­pointed as CEO of Letšeng Diamonds in Novem­ber 2009.

“At that stage (2004) the mine was producing slightly less-than 40,000 carats a year with one processing plant,” she explains.

“In late 2006, Gem Diamonds acquired JCI’s holding and became the 70 per cent shareholder of Letšeng Diamonds, with the Government of Lesotho holding the remaining 30 per cent.  At that time, the company resolved to develop its processing capacity at Letšeng and the second plant was built, enabling the mine to produce approximately 100,000 carats a year, processing over seven million tonnes of ore per year.”

Today, the Letšeng Mine is the seventh largest kimberlite mine in the world, with an estimated 35 year mine life from its two primary vertical kimberlite pipes of the 33 known kim­berlite pipes within the Kingdom of Lesotho. With this is mind, it is no surprise to discover that research and furthering Company knowl­edge of these kimberlite pipes is a high priority for Letšeng Diamonds.

Research, analysis and understanding

Maharasoa says that today Letšeng has reached a point where, as an operation, it has grown and developed a greater confidence in terms of its resources.

“We’ll be doing a lot of research and analysis in terms of understanding the Kimberlite pipes and the grades within them, especially the main pipe,” she says.
“The other focus for Letšeng is to assess its options in terms of optimising processing, includ­ing reviewing the processing plants in their en­tirety and other operational concerns. We need to look at how best to increase the liberation of our diamonds,” Maharasoa explains.

On a more strategic track, Maharasoa says that Letšeng is looking at ways to increase the business potential “in terms of beneficiation.”

“It’s a year of a great deal of analysis and strategic planning vis-à-vis the business plan go­ing forward. In terms of just our current adopted business plan, the focus is on the rough produc­tion and how best to place ourselves in the mar­ket and optimise our pricing in terms of our mar­keting strategy,” she says.

There are certainly a great many factors for contemplation and great potential for growth and development at Letšeng this year. In consider­ing this, it is important to remember what this company is doing, has done and very likely will accomplish next. The highest diamond mine in the world is on the up, and the coveted Letšeng-la-Terae kimberlites are sure to deliver for many years to come.

www.letsengdiamonds.co.ls

Add to: del.icio.us | Digg | NewsVine | Mixx | FaceBook | Twitter