Gem Diamonds Restarts Letšeng Operations

‘Gem Diamonds will recommence full operations at its Letšeng deposit in Lesotho after the government permitted the mining sector to reopen despite a national lockdown.

The company will start production on Monday, implementing special health-and-safety measures to prevent the spread of COVID-19, it said last week. The government reached its decision after weighing up the impact of a long-term closure on the supply chain and the market at large, the miner noted.

Although there have been no coronavirus infections reported in Lesotho, the lockdown has been extended until May 5. Gem Diamonds has not had any cases of the virus at any of its international operations, it said.

The miner intends to continue its flexible tenders — in which it sells rough directly to customers, or through partnership agreements — throughout the global closures, and until it can resume normal sales. So far, Gem Diamonds has earned $18.8 million from two flexible tenders it held in April.

The company will report its updated guidance for 2020 once it has assessed the full extent of the impact of COVID-19 on its operations.’

Source – Rapaport