Maseru
Seven working days has elapsed, and it would appear that the Right Honorable Kime Badenoch has not delivered a response to Yearn for Economic Sustainability (YES) with regards to their request to have Gem Diamonds deregistered. The Secretary of State for Business and Trade had acknowledged receipt of the letter dated 13 May 2024 from YES, which she responded, saying she would provide a response within 7 working days and she did not stick to her word.
On the other hand, when YES first approached Lets’eng Diamonds with their concerns stating that they have violated the Mines and Mineral Act, 2005 Section 11 to which YES was not ‘convinced’. Chief Executive Officer of Lets’eng Diamonds, Mr Motooane Thinyane responded to YES in the following manner:
• He affirmed that they have received the letter written to them on 31 January 2024 that entailed an injunction.
• His counsel was that YES should reevaluate the details for better comprehension.
• Lets’eng is not compelled to advertise the seeking of qualified Basotho more so if they have the ability to perform those tasks themselves.
• The decision was reached through required procedures and governance structures.
• Lets’eng is a corporate citizen and carries out its operations in conformity to the Mines and Minerals Act, 2005.
As means to further gain more insight on the matter, the following question were posed to Mr. Thinyane, and this was his stance:
Q: The current mining lease which Lets’eng has with government of Lesotho spells 8.4.2 that Lets’eng will increase the local procurement from 80% to 90%. Using this clause as an example, after the decision to insource mining activities from MMIC, is Lets’eng still compliant?
A: The correct wording of 8.4.2 should be cited as is in the agreement, as below. The mining agreement obliges the Mining company to “take reasonable steps” and to continue “continue to take all reasonable steps” in relation to procurement of goods and services. The in-sourcing of mining activities is one of the reasonable steps taken by the company. Further to that, clause 8.4.2 should not be read in isolation.
| 8.4.2 “The Mining Company shall take all reasonable steps to acquire by value at least 80% (eighty percent) from Basotho and/or companies that are majority owned and controlled by Basotho and shall continue to take all reasonable steps to maintain local procurement of goods and services at current levels which are in excess of 90% (ninety percent)’’. |
Q: Did Lets’eng get an approval from the Commissioner of Mines to insource the mining activities from MMIC?
A: There is no requirement for any mining company to obtain approval from the Commissioner of Mines to insource any of its operational activities.
Q: For the FY 2023- 2024 how much value added tax did Lets’eng claim from RSL?
A: Details of our financial transactions and records are not for public consumption.
With the current status whereby, the Secretary has not delivered a response Mr Molefi Ntsonyana said, “we have played our part in trying to resolve the matter as discreetly as possible. Our hand has been forced and we have no choice but to take the matter to court”.
He added that they will further request the court order that Lets’eng should not be allowed to sell the diamonds they mine, pending the completion of the case because those diamonds will be regarded as “blood diamonds”, said Mr. Ntsonyana. In addition, they will also write to the London Stock Exchange to inform them of this debacle.
