. . . amid depressed global natural diamonds demand
Mathatisi Sebusi
IN a bid to attract investors to the country’s strained diamond sector, Prime Minister Ntsokoane Matekane attended the 23rd African Down Under (ADU) conference in Perth, Australia, from Wednesday to Friday this week.
ADU is a premier platform for mining and investment, bringing together global ambition and African potential.
In his keynote speech Mr Matekane told investors that although the natural diamond industry is going through a difficult phase, he believes this phase shall pass.
He said producers of natural diamonds globally, together with some governments, are working hard to re-establish the place of natural diamonds as jewels of choice.
Demand for synthetic diamonds has been increasing worldwide and their popularity has affected reduced demand for natural diamonds on which countries like Botswana are heavily dependent.
President Duma Boko recently revealed that Botswana’s economy has been struggling to maintain its health budget to the extent that the government failed to pay some suppliers.
Mr Makekane told the conference that: “Prices are at historic lows, demand is being reshaped by synthetic diamonds, and mining companies worldwide are retrenching thousands of workers.
“In Lesotho, two of our four mines are on care and maintenance, while the others operate on thin margins. Producers everywhere are requesting suspensions or remissions of royalty payments to stay afloat.
“At first glance, this may seem a gloomy picture for the future of natural diamonds. Yet we remain optimistic. Like other commodity slumps before, we believe this downturn will pass. The intrinsic quality of natural diamonds speaks for itself,” he said.
Mr Matekane his government’s second approach was to turn to other minerals to ensure the economy does not suffer because Lesotho has other minerals besides diamond.
“Our coal deposits, long considered to have little value, are in fact rich in rare earth elements; the building blocks of technologies that drive the modern world. These minerals are essential for electric cars, wind turbines, mobile phones, and digital devices.
“What this means is simple: Lesotho is not only a diamond country. We now have the possibility to become a reliable source of critical minerals that the world urgently needs for the green energy transition and digital economy. This opens the door to a new industry that could diversify our economy, create jobs, and strengthen Lesotho’s role in global supply chains,” he said.
The Minister of Foreign Affairs and International Relations, Mr Lejone Mpotjoane, underscored the importance of Lesotho’s participation.
“The presence of Lesotho’s delegation, led by the Right Honourable Prime Minister, is to explore opportunities in the mining sector — aligning business and investment for the best returns,” he said, while in Perth before the conference ended on Friday.
He added that the country’s participation aims not only to leverage its natural resources, particularly diamonds, to boost the economy, but to also strengthen international relations and forge new partnerships — especially with Australian counterparts — for a better future for Lesotho.
ADU has become the leading forum for Australian-African business and government relations. Originally launched to raise awareness of Australia’s interests in African mining and energy, the three-day event has evolved into the largest African-focused mining gathering held outside the continent, attracting high-profile participants each year.
Mr Matekane’s visit to Australia comes amidst a significant downturn in the diamond industry, which has led to retrenchments and the temporary closure of mines across Lesotho.
Just last week, Mothae Diamonds Mine announced the suspension of its operations due to persistent financial difficulties stemming from the prevailing prolonged global market slump. The Mine noted that despite implementing several strategies to scale down operations and reduce costs, the sustained market weakness has made continued operation financially unviable.
“Consequently, the company has elected to formally transition the Mine to care and maintenance in September 2025, to safeguard its assets and preserve the remaining resources for future profitable and responsible treatment.”