Gem Diamonds Letseng mining lease renewed for 10 years

The government of Lesotho has renewed the mining lease for Gem Diamonds' Letseng mine, the company said on Friday.

The lease has been renewed for 10 years with immediate effect, with an exclusive right granted to Letseng to renew the lease for a further 10 years.

However, the royalty payable in respect of diamonds sold by Letseng was lifted from 8% to 10%, which is the current stipulated rate.

Gem will continue to own 70% of the mine, with the government owning the rest.

Chief executive officer Clifford Elphick said: "Gem Diamonds is proud of our long-standing partnership with the Government and the people of Lesotho. The mining lease renewal will allow the Letseng mine to continue to make a very significant economic and social contribution to the people of Lesotho. Gem Diamonds would like to thank the government of Lesotho for its ongoing support and we look forward to continuing the shared value creation long into the future."