Casting an Inverstment Net to the 2017 Africa Down Under Magnitudes

  By Rorisang David Mahlo

In his very first international attempt of duty calling activities in the Mining sector, Honourable Keketso Sello – the Minister of Mining made his first cut and unforgettable mark to open all business doors for the potential and interested investors in  Lesotho`s Mining sector. 

The Honourable Minister Sello, recently threw a net to attract potential international investors in the 2017 Australian Africa Down Under (ADU) Conference, to come to his Mother land for unexplored and untapped mining opportunities.  This year`s conference stretched from the 6^th to the 8^th of September 2017 in Perth - Western Australia. 

In his address, Hon. Sello assured the conference that it is not by mistake that Lesotho is profiled as one of the top ten (10) high quality diamond producing countries in the entire world. “It is by virtue of value and the quality gem stones the country is producing” said the Minister. Specifically, the diamond sub sector is known to have “a total of 405 bodies of Kimberlite pipes, and dykes, of which a very few of them have already acquired mining investors,” said the Minister. 

In addition to that, Minister Sello went on to showcase Lesotho as a dynamically gifted country by uttering to the conference delegates that besides the diamond sub sector; currently Lesotho is mining a variety of different kinds of industrial minerals like Dolerite, Sand tone, and Clay, whose byproducts attract regional and international markets.

On top of that, the Minister told the conference about the ongoing different methods of national exploration activities aimed at discovering even more minerals available in the country. To mention but a few, the Minister reported that, there is a Geo-Chemical Mapping project and a Remote sensing technique: in exploration for Rare Earth Elements (REEs) and Platinum Group Elements (PGEs).

Most interestingly and as an important part of diversification, Hon. Sello indicated that the country has recently signed Memorandum of Agreement (MOA) with two Mining Companies for the exploration of two kinds of mineral deposits: 

      Firstly, MOA has been signed with Mansimanzi Mining (PTY) Ltd to explore for coal around Qhalasi and Matebeleng in Mohale’s Hoek district on Southern Side of the country and evaluate the potential for commercial exploitation.

   The subsequent MOA was signed with Thaba Naledi Energy to explore the existence and the magnitude of Shale Gas between Peka and Mokhotlong on the northern side of the Country.

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The Hon. Minister`s closing remarks to the conference was that “I am sincerely standing on this podium today, to firstly call every one interested and capable of doing mining business in Lesotho to come on board and secondly to invite you all to share in the development of Lesotho`s vast mineral resources as some companies like Lucapa can attest to what I have just said here,” said Hon. Sello.

Consecutively after that, the Chief Executive Officer for Lucapa (Mothae Mine) Mr. Stephen Wetherall also mounted the podium to shed light on his little tasteful experience of how things are done in the Mountain Kingdom of Lesotho.

In his words as everybody was listening very attentively, Wetherall could not hesitate but publicly thanked the government of Lesotho through Hon. Keketso Sello for considering Lupapa as one of the potential Mining companies to do Mining business in Lesotho. “We are not going to let you down Hon. Minister” Wetheral emphasised. 

Secondly, he promised and publicly committed his company to run mining operations by Lesotho’s Mining Code, being the Mines and Mineral Act of 2005 and bearing in mind the international standards governing the Mining Sector as their company is one of the Australian Listed Companies.

In a similar manner, in his speech to Africa Down Under delegates, he seconded what the Hon. Minister had said about Lesotho`s mineral Potential and attested that; “Lucapa`s decision to jump all these countries between Lesotho and Australia was solely for the interest of uncovering the potential that Mothae has underground- you are just yet about to witness this in practice,” said Wetherall. 

He also strongly demonstrated that Lucapa heard it and seen it happening with the first three giant mining companies that came before Mothae, making their strides in Lesotho`s mining sector and “so why not Lucapa then, we must follow the trend if not to set a new one” said Wetherall.

He also concluded his speech by announcing in the forum that his company- Lucapa is scheduled to commence its operations in June 2018. Adding that Lucapa cannot wait and waste these scarce opportunities found in the Mountain Kingdom of Lesotho. 

Finally, the 2017 Africa Down Under Conference was the 15^th annually held conference in Perth, Western Australia and is organised by Paydirt Media - Australian based company. This event is the second largest after the Cape Town`s biggest Mining Indaba where all the world’s Mining Companies, Investors, Government Mining Ministries and Promoters come together for networking sharing their respective sector`s experience and hooking up with new investors. 

The Department of Mines & Geology Hosts KPCS Forum

      By Rorisang David Mahlo

The Department of Mines and Geology held a two days peer review meeting with Botswana and South Africa under the subcommittee of the Working Group on the Monitoring (WGM) of the Kimberly Process Certification Scheme (KPCS). This event was scheduled from the 10^th -11^th of August 2017, in the Board Room of Letšeng Diamond Mine.

The objective of this event is directly related with the 2017 theme of the KPCS that says “Promotion of Africa Diamond Trade,” which is an initiative that happens for the first time in Lesotho.

On top of that, WGM forum is usually convened to revive and ensure compliance by all seventeen (17) active countries trading under KPCS terms and international conditions, Lesotho included.

Furthermore, WGM peer review forum is influenced by an ironic observation of most African diamond producing countries that, there is totally no intra-Africa Diamond trade within the Continent happening at the moment. That, as according to the Chair Person of WGM- Dr. Sipho Manese “sabotages the rate at which most African diamond producing countries would positively impact on the Gross Domestic Products (GDP) of their respective countries.”

Dr. Manese went on to show that “the ultimate goal envisaged by most KPCS African countries is to push hard to get to a point where Diamond subsector will liberate most African citizens from living below the poverty line.” Adding that the deliberations discussed in this forum must drive towards helping each individual country to execute this vision without any fear or favour.    

In addition the Commissioner of Mines Lesotho Mr. Tšeliso Ntabe indicated that “this event came at an opportune time when the Ministry is anticipating to put in place the plans for construction the Lesotho Diamond Centre- a coincidence indeed.” The Commissioner also reported that, this diamond trading facility is aimed at creating a greatest deal of buying and selling platform for the fellow country men and women at their locality.

Furthermore, the Commissioner of Mines could not help but prayed for the ease of soliciting a strong political buy-in to support this important endeavor for the benefit of the Lesotho and Basotho at large. If this could become a dream come true...”since currently Lesotho is one of the top ten (10) best diamond producing countries internationally, this means our economy is going to flourish even much higher than where it is right now.”

For the sake of making it much clearer, Mr. Ntabe continued to shows that this will attract more investors in the country; small and medium diamond dealers and diggers will also be able buy and sell here; the tourism will also boom as the influx of visitors behind diamond buying and selling business would be localised.   
  

Towards the end of the meeting, the whole WGM team was convened for the courtesy call by the Minister of Mining Honourable Keketso Sello. It is at this juncture where Hon. Minister warmly welcomed the committee in the Kingdom of Lesotho and again wished them deliberations that will bear fruitful results for the country. 

In his welcome speech Hon. Sello said that “I welcome the chair and co-chair of Working Group on Monitoring (WGM) of the Kimberly Process Certification Scheme to Kingdom of Lesotho” Adding that by mere looking at them, one could automatically tell from their faces that they were heartily welcomed, and are even enjoying the breezes of the Mother land country Lesotho.

Most importantly the Hon. Minister Sello acknowledged that, the WGM visit has come to the Kingdom of Lesotho when Lesotho has adopted its Minerals and Mining Policy based on the Africa Mining Vision.  Adding that, the policy provides a strategic direction and strategies for managing the exploitation of the country’s mineral resources said the Minister.

Besides that, the Hon. Minister highlighted that, the Government recognises the growing economic importance of the mining industry, driven by diamond mining. However, in order to fully achieve that, the Ministry is currently reviewing its entire legal framework- the Mines and Minerals Act of 2005 said the Minister.

He concluded by  strongly emphasising that, more and frequent intersections with our fellow African countries is very crucial and can ultimately put Lesotho on board to ensure that our national interests are realised and considered in the Kimberly Process. He therefore wished them a bonvoyage when they have satisfactorily completed their business in the country. 

Letšeng Receives Their Fair Share of Directives

By Rorisang David Mahlo

Letšeng Diamond Mine hosted the Minister of Mining - Honourable Keketso Sello for the first time ever at their operational site. This visit was scheduled and happened on the 9^th of August 2017; on a very clear sky but as usual, under the normal cold winds of the cliffs of the highest mountain passes of Mokhotlong District ranging around 3225 meters above the sea level. 

Unlike the first two neighboring Mining companies that hosted the Hon. Minister prior to Letšeng which are Liqhobong and Kao, this time around the Minister`s tour was influenced by mammoth of issues of community and national interest, which the Honourable Minister wanted to hear them reported or denied on point blank in their first meeting so as to set the record straight.

Moreover, the acting Chief Executive Officer for Letseng- Mr. Jeff Leaver expressed his company`s gratitude that “Letšeng Management feels honoured and delighted to have a chance to host  a dignitary of the stature in this premise.” He told the Hon. Minister to be comfortable and feel at home.

To start with and in no particular order of any importance, the issues pertaining to the existing nepotism based on different factors such as nationalities of employees were discussed. It is in this deliberation where the Letšeng Human Resource Manager (HRM) Ms. Maleshoane Kemeng denied the allegations that the consultancy jobs are offered based on discriminatory grounds. Defending that, she said that Letšeng Diamond only engage consultancy jobs for the specific and short term and highly scares skills required in the mine.

Following that, was the question why Basotho cannot occupy the high ranking positions on permanent bases while there is a binding agreement of the transfer of skills between the Government and Letšeng Diamond Mine. In this regard, Letšeng Management disputed the claims and promised to provide the source documentation that will lay off the Hon. Minister`s fear, that will also show their pay roll and indicate who occupies which position in the mine.

Besides that, the matter of unfair procurement services provided in the mine, that economically sabotages Lesotho and Basotho`s business community was discussed. In response to this, the Letšeng Procurement Manager- Mrs. Hilda Chakela strongly denied the allegation by categorically highlighting the three (3) different stages at which procurement services are undertaken, starting from the lowest to the highest where services are competed for in a form of tenders. 

The procurement was one area whose deliberations got so heated up, but it was resolved that without any failure Letšeng is expected to substantiate their claims with specific references before the Ministry as soon as they can possible do (ASAPD).  They were also requested to provide the ministry with their procurement policy as their guiding tool. 

Furthermore, Hon. Sello also expressed his disappointment to Letšeng by questioning what informs the mine`s way of hiring the use of Yellow Plant Machinery in the mine; and why is it consistently a one man monopoly. The response to that was, since it is one of the major and core works of the mine, it is also follows the tendering process that pays more than Million. It is also guided by terms, conditions and set by the mine. Nevertheless, just like others, Letšeng was instructed to submit the supporting records of their claims for the ease of checks and balances.

In his closing remarks, Hon. Sello could not hesitate but uttered a directive to Letšeng Management to be kind-“… and find some space in your tight  budget allocation to spare some funds for the rehabilitation of the proper police guards stationed in the mine. They also deserve some decent working environment as they are deployed here to protect you guys,” says Hon. Sello.

In a nutshell, just like the first two organised familiarisation tours from Liqhobong and Kao Mines before the Letšeng one - this tour included a brief overview of the mine and presentations narrating their mode of operations under each section, the challenges each section is facing and their surviving strategies in the sector.

Most importantly the guest of honour (Hon. Sello) and his entourage were given a privilege of physically to tour around the two pits being mined by Letšeng Diamond being the (Main Pipe and the Satellite Pipe). They also visited various sections of different operational sections like the preliminary crushing plant, recovery plant, the sort house, the tailing dams, and many more.