Letuka Chafotsa
THE Ministry of Mining, on Tuesday, held a stakeholder consultative meeting following the completion of the Mining and Minerals Policy consultation process in the country’s 10 districts.
The Mining and Minerals Policy, which was developed by the government of Lesotho with support from the United Nations Development Programme (UNDP) and United Nations Economic Commission for Africa (UNECA), seeks to carefully balance the need to create conditions that attract high flows of mining investment with the requirement to have outcomes generated therefrom producing sustainable social and economic progress for all the people of Lesotho.
Speaking at the meeting, Minister of Mining Tlali Khasu said that the coalition government developed the policy, which will guide the ministry, in order to discharge its mandate and provide strategic direction, provide measures and initiatives for economic growth and uplift Basotho’s living standards.
MINING Minister, Tlali Khasu, annulled the prospecting licences citing “irregularities” in their issuance.
“The policy, which has be developed following in-depth and inclusive consultation and participation of the mining sector representatives, companies and civil society, is harmonised with the provisions of the National Strategic Development Plan (NSDP) and Vision 2020, which provide measures and initiatives for economic growth and the social upliftment of the living standards of all Basotho nation,” Mr Khasu said.
“It also harmonises with the Africa Mining Vision, the continent’s roadmap for using the exploitation of mineral resources for socio-economic development.”
According to Mr Khasu, the mining sector is one the growth engines in the NSDP and expected to bring growth, provide jobs and revenue for the country.
Mr Khasu explained that the success of the Mining and Minerals Policy will rest on how well it repositions the mining industry to ensure it delivers outcomes that equitably and transparently benefit investors, government and Basotho in general.
Presenting on the overall policy, the project’s Lead Consultant Silane Mwenechanya said the initiative’s desired outcome is to foster the responsible and globally competitive exploitation of the country’s mineral resources in a manner that results in sustainable economic and social progress for the entire populace.
“In its efforts to realise the full economic potential from the country’s mineral resources, in particular diamond mining, government aims to sustain the flow of the much-needed mining investment by maintaining a mining fiscal and taxation regime that is competitive, predictable and consistent,” said Dr Mwenechanya.
“It will also raise the participation of the Basotho people in the running and ownership of the country’s mining and minerals industry and also enable Basotho to become the primary vehicle for establishing inter sector business linkages between mining and agriculture, mining and tourism and mining for the value-adding processing industries.”
Dr Mwenechanyana further stated that the Artisanal and Small-Scale Mining (ASM) sub-sector will also be developed to give impetus to economic development.
“Transforming the ASM sub-sector from its poverty cycle trap and widespread negative and exploitative practices to a value-adding, poverty reducing economic activity with special significance for rural development is imperative,” he said.
Also speaking at the meeting, Maliepetsane constituency legislator and the founder of the Lesotho Diamond Academy, Michael Molefeemphasised the need for Basotho to benefit from the exploiting of their country’s mineral resources.
“There should be enhanced opportunities for economic diversification, domestic integration, value addition and infrastructure development for Basotho to enjoy the benefits and also be empowered through the mining sector,” Mr Molefe said.
Empowering the ASM operators, Mr Molefe said, is also key to the development of the country’s mining sector.
“Notwithstanding the formidable challenges, the potential of the ASM sub-sector as a tool for addressing poverty particularly in remote rural areas is considerable,” he said.
“A well-managed and ASM can contribute to job creation and increase disposable income thereby growing local purchasing power and stimulating the economic growth of the country,” he said.
He further said the equity shareholding should also be at least 51/49 for locals and foreign investors respectively.
