Firestone to hire diesel generators to run Liqhobong plant

Mining company Firestone Diamonds has placed an order to hire diesel generator units to run the processing plant at its Liqhobong mine, in Lesotho, as the operation continues to struggle without sufficient power from the grid.

The units are scheduled to arrive on site by the end of the month and to be fully operational in early November, Firestone said on Tuesday.

The generators would be used until grid power was restored from the Muela hydropower station, which the company said should take place on December 1.

Operating costs were expected to increase by the cost of renting the gensets and of the associated diesel consumption.

Firestone’s share price has been under pressure since it first alerted the market to the power failures in early October. The company’s stock fell further on Tuesday, hitting a 52-week low of 0.50p each on London’s Aim.

Muela power station is owned by the Lesotho Electricity Company and is located at the Katse dam, which is part of the Lesotho Highlands Water Project (LHWP). The Lesotho Highlands Development Authority last month announced that it would shut down the LHWP water transfer and delivery, as well as associated systems, for scheduled maintenance during October and November.

Muela is also undergoing scheduled maintenance.