The Coincidence of Fancy Diamonds

By Rorisang David Mahlo

The Ministry of Mining is delighted to announce the recovery of two beautiful upmarket diamonds as thus: the 89.75 carats yellow diamond by LUCAPA Diamonds at Mothae, and the 29.59 carats Pink diamond by Storm Mountain Diamonds at Kao, named THE ROSE OF KAO, through the positively upcoming mining companies leased to commercially mine diamonds in the outskirt of Maluti Mountains of Lesotho.

These attractive diamonds which one of them (The Rose of Kao-Pink) is already exported to compete for the lucrative sales were recovered on different dates: The Rose of Kao (Pink) on the 12^th June, while the Yellow was on the 28^th June 2018. The remaining one (Yellow) is safely kept and awaiting the completion of the trial stage and LUCAPA`s approved sales and marketing contract by the Ministry of Mining.

No	Specs	Details	Pic by- SMD- Kao
1	Name	The Rose of Kao
	Weight	29.65 - Pre Boil: Post boil: 29.59 carats
	Colour	Pink
	Value	Pre - boil value of USD300 000/carats
No	Specs	Details	Pic by- LUCAPA- Mothae
2	Name	Not yet Named
	Weight	89.75 - Pre Boil
	Colour	Yellow
	Value	Not yet evaluated

Therefore, according to the statement released by Kao Mine Management, The Rose of Kao is estimated to be sold at value of $USDC 300 000 which could be estimated to the calculations of (8.88) Million US dollars, which is equivalent to M117 Million Maloti but with potential prospects to sell even much higher or less than the estimated value depending on the diamond market performance.

According to Gemological Institute of America (GIA) the quality of diamonds can be graded on four factors or 4Cs. These are the cut, clarity, color, and carat weight of the diamond. It is very important to note the characteristics of these precious stones while dealing with them. The degree of the color of these precious stones is tested over certain levels that generally range from colorless (D) to significantly colored (Z).

Therefore in this instance Lesotho is yet to rip the benefits of producing diamonds based on one of the four factors or 4Cs which is the “Colour.”

THE ROSE OF KAO as per the statement posted by SMD will go on tender at BONAS in Antwep, marketing company acting on behalf of SMD and KAO from the 17^th September. The Tender is expected to be closed on the 1^st of October 2018.

In nutshell, the marketing of the said Pink stone has already started and it is expected that it will attract a lot of attention from the serious buyers and highest renowned specialists of such stones.  

The Mining Directors Get Induction

           By Rorisang Mahlo

Mining Directors Round Table Discussion

In an attempt to introspect the efficiency and effectiveness in the regulation of the Mining Sector, the Ministry has identified a need to empower the Directors nominated to represent the Government in the Boards of various commercial mining companies. The Ministry, therefore, conducted an induction session for the Directors at the Ministry`s Boardroom on 29^th August, 2018 where they were equipped with necessary knowledge and tools to execute their duties and responsibilities as Members of the Boards.

When welcoming the Directors, the Principal Secretary, Mr. Ntahli Matete, strongly stressed his discomfort to discover that the Directors were operating in silos while they are expected to be singing one song with rhyming lyrics on their duties. “It is high time that we reconnect and try to standardise our mode of operation, such as our reporting frequency, and how we get feedback from your side on issues demanding our urgent attention,” said Mr. Matete.

Most importantly, “creating an internal communication strategy that will enable a simplified means of quicker communication among us without any hindrances can help quite a lot,” reiterates the Principal Secretary while opening the floor for everyone to share their views.

In his words of appreciation and on behalf of the rest of other Mining Directors one Director whose name is withheld due to security purposes acknowledged the Ministry`s gesture of bringing them on board as they might have experienced different challenges, and had to face them all by themselves. “We were feeling neglected and lost without our mother Ministry`s support,” said the Director. Adding that they cannot wait to hear where their jurisdiction starts and ends.

When getting to the core business of the day, the Chief Legal Officer, Ms. Mathealea Lerotholi, told them that, the terms of reference are prepared to assist the Government directors in clarifying responsibilities and ensuring effective communication between the Directors and Shareholder.

Adding that, in order to ensure that the Government is represented in the Mining companies’ Boards”, at least one director nominated by the Government shall be present for a quorum to be constituted said Ms. Lerotholi.

On top of all that, the Directors have responsibilities and duties which they are expected to perform, and amongst them, she highlighted the following in no particular order:

        I.            Participation in every board sitting;

      II.   Ensuring implementation of government’s interests,  integrity of the Company’s internal controls, and management information systems and that they are dealt in accordance with the law;

    III.  Ensuring compliance with mining leases, all major corporate policies and procedures that govern the Mining companies’ operations;

    IV.    Ensuring timely reporting of any other developments that have a significant and material effect on the companies Mining Lease agreements and the applicable laws.

Based on their clear mandate as presented, the Directors discovered that they need to up their game in order to perform to expectation. However, there were certain areas that appeared as matters concerned which they have deemed critical and worth shedding light with their Ministry leadership.

Amongst them were “If honestly we are vested with “Fiduciary Duty” as I consider this to be the core of our mandate, then this means we are carrying a responsibility that we also have to ensure accountability and transparency or else we will one day be cursed by grandchildren,” emphasised one Director whose name is withheld for their protection.

Also, another Director asked whether the Ministry was aware that as Directors, their powers are slightly limited, for instance, the Ministry is not represented in the process of marketing and selling of the diamonds at Antwerp in Belgium.

”The main reason why I say this is because I have realised that whatever the tender results that are being reported by the mining companies, it might not be the true picture of the reality as we are not privy to, and have no means to verify the information on the post-sale results of the diamonds”, said the Director.  

The Ministry was advised that, perhaps, it was high time that it acted swiftly to redeem this situation in order to realise the best sales returns, otherwise, the country will forever be cheated.

Finally, the Directors identified the need to involve Lesotho Revenue Authority (LRA) to ensure collection of all kinds of revenue. In this respect, the Deputy Principal Secretary (DPS), Mr. Lira Ralebese, assured them that, “We have just established a team of officials from both the Ministry of Mining and the LRA with clear terms of reference, aiming to achieve the objective of maximising tax collection” Mr. Ralebese reported.