Leemisa Thuseho
LESOTHO largest diamond mine, Letšeng Diamonds, is set to cut around 20 percent of its workforce amid prolonged slowdown in global diamond prices, compounded by a weak United States (US) dollar and ongoing US tariff uncertainties.
The mine is also curtailing its waste mining activities as part of a broader cost-cutting strategy among measures aimed at conserving cash, protecting shareholder value, and ensuring the sustainability of operations, Letšeng Diamonds says.
“Considering the prolonged weakness in global diamond prices, compounded by a weak US dollar and ongoing US tariff uncertainties, Letšeng has implemented decisive measures to conserve cash and protect shareholder value,” the mine said in a press release yesterday.
“While the company has met its production targets, it has not been immune to the sustained pressure on rough diamond prices.”
Although a 50 percent tariff was initially imposed on Lesotho’s exports earlier this year, it has since been suspended to allow for negotiations between the two countries.
The original three-month grace period expired on 9 July 2025, but a deadline extension has been granted until 1 August 2025. Lesotho is currently in a queue among many countries awaiting negotiations with the US, but uncertainty has already begun to bite.
Letšeng also indicated that it has comprehensively reviewed its short-term mine plan and base operations to significantly reduce operational expenditure.
Key short-term cash flow optimisation measures have been implemented in both mining activities and workforce management.
On mining operations, the mine said both its treatment plants will continue to operate at existing volumes.
“As for waste mining volumes in both the main and satellite pits, they have been reduced to a minimum for an initial 12-month period, without compromising the long-term life-of-mine plan,” the statement added.
To align with the scaled-back waste mining and other operational changes, the mine said it would implement a 20 percent reduction in its workforce.
“The company regrets that an approximately 20 percent workforce reduction may be necessary to align with the scaled-back waste mining operations and other required operational adjustments.”
Letšeng further stated that engagements with employees and relevant stakeholders have commenced and will continue to ensure that the rationalisation process is handled responsibly and transparently.
The diamond miner has assured shareholders that it remains committed to its long-term strategy and is confident that the measures being implemented will better position the company for a strong recovery once market conditions improve.
“The company will continue to monitor market developments closely and provide further updates,” the statement said.
