Lesotho is positioning itself as a key mining investment destination for South African and other foreign investors, and is offering stability in key infrastructure services, such as reliable supply of water and electricity.
This week, the Mountain Kingdom will host the inaugural Lesotho Mining Indaba Khotla which will bring mining industry stakeholders such as government officials, industry executives and prospective local, regional and international investors.
Teboho Selile, an economist and one of the organisers of the Indaba, told Business Report on Saturday that the gathering will shine the spotlight on challenges and opportunities for investment in the mining sector.
“The biggest thing in terms of sustainability of any economy are the resources put into whatever you are doing. Stability of our power supply is something that can attract investors,” Selile said.
“In as much as we are not producing our own electricity, we still get power from the southern African power pool and in reality. Under our negotiations in terms of the Lesotho Highlands Water project, Eskom cannot load shed Lesotho, even if they are to load shed the whole of South Africa.”
South African investors have been suffering from headwinds emanating from aged and poorly maintained infrastructure such as electricity and rail.
Processing at ports of entry and export have also been wobbly, forcing some mining companies to cut their production.
Selile said investors would be attracted to jurisdictions that have stability in infrastructure, adding that there was “guaranteed electricity supply in Lesotho” while access to water was also not problematic.
“In Lesotho we don’t have issues with water unlike in South Africa. The mines are up in the highlands where all sources of water are coming from. This enhances Lesotho’s opportunities as an investment destination,” he said.
Lesotho is renowned for producing high quality diamonds, with its mines operated by local and international companies.
However, Lesotho’s Minister of Natural Resources Mohlomi Moleko on Saturday said the country’s diamond mining industry was “not fully developed and exploited”.
Moleko said the country’s four diamond mines employed a combined workforce of 2 997, while a total of 12 million tonnes of kimberlite were processed to produce 461 594 carats in 2022.
“If the four mines can make a positive contribution, imagine what doubling the number of commercial mines can achieve for the country. The upcoming Mining Indaba-Khotla aims to unlock this potential,” Moleko said.
Lesotho has also been tackling the issues of corruption where public officers are reportedly sourcing bribes from prospective investors to fast-track exploration and prospecting licenses.
Selile said the inaugural mining indaba will have panel discussions and presentations from various mining industry stakeholders to deliberate these issues in detail.
“We will have penal discussions and presenters; bringing together people in same room to deliberate,” he said.
“Investors want a good ease of doing business where they come into Lesotho and leave in a week with their companies registered and having their licenses,” added Selile.
The Kingdom of Lesotho Mining Indaba Khotla is an entity incorporated in Lesotho as a special purpose vehicle geared to drum up investment opportunities for the kingdom.
During the two-day conference on Thursday and Friday, attendees will have “an opportunity for critical discussion on pertinent issues that will shape and inform the future of mining” in the country.
There will also be discussions centred on regional developments and case studies around technological advancements, environmental stewardship, community engagement, labour related matters and economic development.
BUSINESS REPORT