News have been making rounds about the recently held Lesotho’s mining sector indaba. Indeed Lesotho is a country known for its production of Diamonds, and Basotho must have conversations around how these minerals are managed in a manner that is economically sustainable and environmentally safe.
Critical as it is that we must have these crucial conversations, this article will endeavour to sway the opinion of the reader to the reality that this “mining Indaba” is nothing but a slap in the face for Basotho.
It is necessary that a brief historical analysis of how the position of Lesotho has evolved over the years, mainly driven by changes in the political landscape, regarding the management of mineral resources and particularly the diamond mining sector, perhaps the most significant. King Moshoe-shoe the First was very clear, the question of the Land was non-negotiable, foreigners were not even allowed to have an inch of our land, so the question of westerners having access to the minerals under our land was almost unfathomable. And that remained the case for the most time the Kingdom was under the rule of the Chiefs, albeit under colonial arrangements.
The realities of the evolving and unfolding world order that lead to the collapse of the Soviet Unionand the formation of the Bretton wood institutions ushered in a new global economic order, one where exploration of mineral resources was necessary for government liquidity and to respond to social pressures like unemployment, all this happening in an economic set up that discouraged nationalisation and promoted privatisation. These global and domestic realities necessitated the changing of the posture of subsequent administrators. Slowly but surely the government opened its doors for foreign companies to explore diamond mining in Lesotho.
The current reality is that in the exploration Diamonds, Lesotho benefits very little if anything at all. The current legal and political posture effectively favours foreign interests above the interests of native Basotho.
Firstly in Lesotho it is a criminal offence for a native Mosotho who finds a diamond to keep it, he must surrender it to the state, otherwise it is a criminal offence, that is where we must begin the discussion, anything discussed which does not deal with this original sin is a slap in the face. This happens in an environment where foreign Companies literally dig up the diamonds with earth moving machines, and foreigner are criminalised for even accidentally finding a diamond. This is the legislative reality in which the indaba will be held.
The Lesotho mining Indaba is being hosted in interesting times indeed, on the hills of a statement that was made by Minister Moleko to the effect that mining companies are effectively doing Basotho a favour by operating in Lesotho. The political leadership of the country already holds a view that Basotho are getting more than their fair share, effectively for Basotho there is nothing more to negotiate in the indaba, because according to those who are representing us, we are already getting our fair share, this is why this indaba is nothing but a slap in the face.
The indaba, is being held in the wake of one of the biggest mining companies terminating its contract with a company owned by the Prime Minister Samuel Matekane. The Contract was for the supply of earth moving equipment by the Company, the Mine has effectively paid the Prime Minister so that it owns the machines and removes beneficiation from native Basotho. The indaba being presided over by a government that is overseeing such actions is nothing but a slap in the face.
The indaba is being hosted in an environment where the Government of the day is locked in a legal case involving mohahlaula airlines, a company that has approached the courts of law to force the current government of Lesotho to give it and another Basotho owned company’s preference when it comes to transporting diamonds from Lesotho. The Government of Leosotho is opposing the application, the position of the Government is that Basotho businesses should not be given first priority when mining companies procure resources, something that is provided for by the Mining and Minerals Act. Minister Moleko even went as far as stating that they would rather change the law that says Basotho businesses should be given preference. This ladies and gentlemen is nothing but a slap in the face.
This indaba is being held at a time when the recently retired former Director of Civil Aviation Motsoaole Lesupi was suspended but never charged, for simply refusing to grant permits to foreign airlines to fly Lesotho diamonds, he stood on the side of the law and on the side of ensuring that Basotho benefit from their mineral resources. He was punished for taking that position by this government. This is the climate within which the indaba is being held, and those in the front seat making these shameful decisions are hosting it, it must be obvious now that it is nothing but a slap in the face.
The foregoing analysis is evidence that the current legal framework exacerbated by the excessively friendly posture of the Government towards the foreign investors, is a barrier towards Basotho attaining and extracting maximum benefit from mineral exploration.
The mining Indaba is nothing but a show meant to brainwash the population to thinking they have a stake in the mines of Lesotho. The reality is that Basotho, whether privately through provision of resources or direct and indirect employment are getting peanuts compared to the share of money that goes towards foreign owned businesses, and therein lies the problem. Further, even the Government itself in terms of revenue generated through dividends is meagre compared to the value of diamonds that leave the Land. The diamonds are still being auctioned outside Lesotho.
The Diamonds are still being processed in foreign shores, the jewellery is still made in foreign lands, we are not developing any state capacity at all to explore independently as a state and process, market and sell, all our government are doing is to manage an arrangement that was never set up to benefit Basotho from the onset.
Unless something drastic happens towards dismantling the current legal and political infrastructure that informs and underpins our approach to the exploration of our resources, any indaba is but a feel-good exercise for those in power and a dose of anaesthesia for the public to numb the pain of being robbed in day light.
