Maseru – Letšeng Diamonds (Pty) Ltd has announced the implementation of a series of strategic operational and cost-management initiatives in response to sustained pressure from weak global diamond prices, a depreciating US dollar, and continued tariff uncertainties. These measures aim to preserve cash reserves, protect shareholder value, and secure the long-term viability of the company’s operations.
While Letšeng has consistently met its production targets, it has not been immune to the adverse macroeconomic environment. Falling rough diamond prices and unfavourable exchange rate dynamics have compelled the company to reassess its short-term mine plan and overall cost structure. The key actions now being implemented to optimise cash flow include:
• Mining Activities: Both of Letšeng’s processing plants will continue to operate at current treatment volumes. However, waste mining in the Main and Satellite pits will be significantly scaled back to minimal levels for an initial period of 12 months. This tactical move is intended to conserve resources without compromising the integrity of the long-term mine plan.
• Workforce Rationalisation: As part of the cost-reduction drive, approximately 20% of the workforce may be impacted. The company has initiated formal consultations with affected employees and relevant stakeholders to ensure a fair, transparent, and responsible process.
Letšeng Diamonds reaffirmed its commitment to its long-term strategy of producing world-class diamonds and operating sustainably. The company believes these proactive steps will strengthen its financial resilience and position it for recovery when market conditions stabilise.
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About Letšeng Diamonds:
Based in Mokhotlong, Lesotho, Letšeng Diamonds is globally recognised for producing some of the world’s highest-quality diamonds. The company is committed to responsible mining practices, sustainable development, and delivering long-term value for its stakeholders, even in challenging market conditions.
