Lesotho Renews Gem Diamonds' Let??eng Lease

RAPAPORT... Gem Diamonds has obtained a 10-year lease to continue miningat the lucrative Let??eng deposit in Lesotho, but will haveto pay a larger proportion of its sales proceeds to the government. The southern African kingdom has also given the miner an exclusive right to renew the lease for anadditional decade, the company said in a statement Friday. Gem Diamonds must pay 10% of diamond sales to the government, an increase from the previous rate of 8%, though the government may waive part or all of the royalty if the company makes a large investment in the mine. The government also increased the numberof work permits the company can obtain to recruit foreign workers if it needsto fill skills gaps at the site. "The mining-lease renewal will allow the mine to continueto make a very significant economic and social contribution to the people ofLesotho," said Gem Diamonds CEO Clifford Elphick.Let??eng is famous for its large, high-value rough. Last year, it yielded its biggest stone to date, the 910-carat, D-color Lesotho Legend, which Gem Diamonds later sold for $40 million.Gem Diamonds owns 70% of the mine, with the governmentholding the remaining 30%. Production from the deposit totaled 126,875 carats in2018, while the average selling price came to $2,131 per carat -the highest for any kimberlite diamond producer in the world, according to thecompany.Image: Rough diamonds from the Let??eng mine. (Gem Diamonds)