The International Resource Journal: Letseng Diamonds 

Letseng Diamonds
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admin on 24 January, 2010 11:41:00
 
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