Lesotho Government Responds to Mine Closures with Focus on Local Resource Development

Lesotho is facing renewed pressure on its mining sector following the closure and suspension of several major operations, a situation that has raised concerns about employment and long term economic stability. The Minister of Energy and Mining, Mr Lejone Mpotjoane, has confirmed that the government is aware of the ongoing mine closures affecting the country. He explained that the primary cause is the declining global market for diamonds, which has weakened profitability in the sector. The impact has already been felt through widespread job losses in mining communities. These developments have placed additional strain on households that depend heavily on mining income. The government now faces the challenge of stabilising the sector while exploring alternative sources of economic activity.

Several mining operations have been affected, including the suspension of activities at key diamond sites such as Liqhobong and Mothae mines Liqhobong Mining Development Company and Mothae Diamonds, which have not been operational for months. There are also reports suggesting that Kao Mine may face closure in the near future, raising fears of further retrenchments. These closures have disrupted local economies that rely on mining for employment, procurement, and community development support. The ripple effects are expected to extend into small businesses and service providers linked to the mining value chain. Government officials have acknowledged the urgency of addressing both the immediate and long term consequences of these disruptions. The situation has highlighted the vulnerability of economies heavily dependent on a single commodity market.

In response, the Ministry of Energy and Mining has begun exploring alternative underground resources that could support economic diversification. One of the key focus areas is crushed stone, which the government believes holds significant potential for local value creation. Mr Mpotjoane stated that crushed stone should primarily be mined and managed by Basotho businesses to ensure that benefits remain within the country. He added that contractors from other countries should source crushed stone through local companies, allowing Basotho enterprises to expand and create more employment opportunities. This approach is intended to shift greater control of natural resources into local hands while strengthening domestic industry participation. The strategy also aims to stimulate small and medium sized enterprises within the mining supply chain.

The Minister also indicated that the government intends to review and amend laws governing ownership of crushed stone companies. He expressed concern that some of these enterprises are currently controlled by non Basotho interests, limiting local economic empowerment. According to him, stronger legal frameworks are needed to ensure that national resources generate maximum benefit for citizens. The proposed reforms are expected to support greater local ownership, improved regulation, and increased accountability in the sector. These policy changes form part of a broader effort to restructure the mining industry in response to global market pressures. By prioritising local participation and resource diversification, the government aims to reduce dependency on diamond exports. The overall direction signals a shift toward a more resilient and locally driven mining economy in Lesotho.