Letsatsi Selikoe 

THE government is planning to take full control of the Mothae Diamond Mine by purchasing the 70 percent stake which is currently owned by Australian mining giant, Lucapa Diamond Company. 

Mothae Diamond Mine, located in Butha-Buthe, is an open-cast mine that began commercial operations in 2019. The mine is known for producing large, high-value diamonds, including a 215-carat D-colour Type Iia diamond, a 204-carat Type Iia diamond, and rare pink, blue, and yellow fancy coloured diamonds. 

Minister of Natural Resources, Mohlomi Moleko, confirmed to the?Sunday Express?on Friday that the government was contemplating on buying Lucapa shares in the Butha-Buthe mine. 

This will give the government 100 percent shareholding of the mine as it currently owns?the regulatory?30 percent. 

“Taking over the?mine by the government is under consideration, but that should not in any way curtail the (selling) process started by the?mine (Lucapa),” Mr Moleko said. 

Mr Moleko was reluctant to go into detail?saying?the matter was still?under consideration and it would be prejudicial to elaborate at this stage. 

African governments in general are not known for their acumen in running businesses. It remains to be seen how the mine will fare if it is eventually taken over by the state. 

Lucapa announced its intention to sell the mine on May 28?2024,?saying?it was reviewing its asset portfolio and considering all options for the divestment of its stake in Mothae. 

The company will be finalizing a data room for interested parties and will provide an update on the divestment process in the coming weeks. 

The disposal plan is aimed at streamlining the company’s portfolio to focus on its core assets in Africa and Australia. 

Lucapa’s chairman, Stuart Brown, said?the company?was?eager to finalize the divestment process and move forward with its new strategic direction. 

The potential sale of Mothae Diamond Mine has sparked interest among industry players and investors. Lucapa’s managing director, Nick Selby, expects significant interest from those within the diamond industry and beyond. 

“We have kept our partners, the Lesotho government informed along the way and they in turn have indicated their interest in taking over the operation. We will keep shareholders informed as well. It is still early days and good progress is being made,” he said.