Lesotho Unveils Dual Mining Strategy: Stabilizing Diamonds While Exploring Rare Earth Potential
The global diamond market may be under strain, but the Kingdom of Lesotho is charting a bold path forward. Speaking at the Africa Down Under conference in Perth, Prime Minister Sam Matekane unveiled a dual-track mining strategy aimed at stabilizing the country’s diamond sector while opening a new frontier in rare earth elements (REEs).
Matekane acknowledged that the diamond industry is going through a “difficult, transitory period.” Prices are at historic lows, synthetic diamonds are reshaping demand, and job cuts are hitting the sector worldwide.
Lesotho is not immune: two of its four diamond mines are currently on care and maintenance, while others are operating on razor-thin margins. Some producers have even requested royalty payment exemptions to remain viable.
Despite this downturn, the Prime Minister struck a note of resilience:
“We believe this downturn will pass,” he declared, reaffirming Lesotho’s commitment to supporting diamond operations with temporary relief measures and efforts to sustain the natural diamond market.
Matekane also praised the country’s skilled workforce, noting that 90% of employees in Lesotho’s diamond mines are nationals—engineers, geologists, and operators who have mastered the challenges of kimberlite mining at high altitude with “resilience, efficiency, and innovation.”
Lesotho’s ambitions, however, extend beyond diamonds. Matekane revealed that recent studies have uncovered significant rare earth potential within old coal deposits once deemed of little value.
“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,” he said.
This discovery opens the door to a new industry that could diversify the economy, create jobs, and integrate Lesotho into global supply chains for clean energy and advanced technologies.
The Dual-Track Mining Strategy
Matekane outlined the government’s two-pronged approach:
Stabilizing the diamond sector – through temporary measures to support operations, safeguard jobs, and restore investor confidence.
Diversifying into critical minerals – by opening transparent exploration opportunities for REEs, inviting investors into joint ventures, technology partnerships, and new mining projects.
A national mining strategy and regulatory framework is being developed to ensure transparency and long-term growth.
“It means positioning Lesotho as a dependable player … giving early movers a genuine advantage in a new emerging market,” the Prime Minister emphasized.
A Personal Invitation
Closing his address, Matekane extended a heartfelt invitation to investors:
“Come visit first, and we will take you around … then come back home, take others’ hands, and then come invest with us.”
