Emma Muller
23 July 2007
Johannesburg — LESOTHO' s M inister of Natural R esources Monyane Moleleki looks far from fatigued by his ambitions to turn the country into a foreign investment favourite, despite serving more than 10 years in different ministerial posts.
Moleleki, who describes himself as a "non conformist" and a "trendsetter", moves around the mountainous kingdom with an escort of armoured cars after an assassination attempt last year.
"I like to do things differently ," he says jokingly, pointing out that his bodyguard is female while his secretary is male.
Over the past few years, Moleleki has spent a lot of time promoting the country's stable mining environment worldwide, and in many ways the success of Letseng Diamond Mine can be ascribed to him.
In fact, it was Moleleki, when foreign minister, who did the honours at the official opening of Letseng in 2004.
Previously, the country's diamond sector relied solely on small-scale mining operations.
More than eight years ago, Moleleki began pushing for commercial mining. This led to the development of Letseng mine, which has the highest average value per carat of any mine in the world.
Small-scale mining has mostly disappeared and Lesotho's kimberlite-rich areas are being developed by at least three different companies.
AIM-listed European Diamonds' Liqhobong mine produces about 20000 carats a month. Motapa Exploration Limited will begin bulk sampling at its Mothae kimberlite prospect northwest of Letseng, in the last quarter of this year. Kao diamond project is expected to begin bulk sampling later this year.
Lesotho's diamond mining legislation has many similarities with the mining legislation of Botswana in that it is not prescriptive, but does have a considerable transfer of skills element. But despite a recent surge in foreign investors looking for diamonds, poverty is profound and widespread. Lesotho also has one of the world's highest HIV/AIDS infection rates. In addition, political trouble is brewing with the opposition disputing February's elections.
Moleleki is optimistic. "Foreign investment in diamonds is going through a boom. Getting foreign investors to come to Lesotho is a priority and we are being successful," he says.
"A major project is under way to supply SA with fresh water. There is also strong interest to invest in hydro power. It's fashionable, and we have the capability for it.
"At independence 40 years ago, only 2% of the population had electricity, now 11% has access. We need to supplement this and have to develop it for our own needs, but then the rest can go into the southern African power pool."
On diamonds, Moleleki says he has studied closely the developments in SA, where the law requires producers to sell a percentage of their production through a government-appointed body to support the "economically disadvantaged".
While supporting the idea of job creation, Moleleki says the prices realised for Letseng's diamonds highlight that the marketing of diamonds should be allowed in other marketplaces.
"I can't see the same happening here tomorrow. Our legislation is based on making foreign investors want to come to Lesotho. W e don't want to carry a stick. Compliance is in the spirit of the legislation, not the means for it," says Moleleki.
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