Gem Diamonds announces that its Letšeng Diamonds, has reached agreement with Matekane Mining Investment Company (Proprietary) Limited (MMIC) in respect of its load and haul contract with Letšeng.
MMIC is the provider of load and haul services to the Letšeng mine.
As previously disclosed, Letšeng had been considering its options in respect of the contract following the election of Sam Matekane as Prime Minister of Lesotho in October 2022, who is therefore designated a Politically Exposed Person.
Having carefully considered all options, Letšeng has reached agreement with MMIC to terminate the Load and Haul Contract with effect from 1 December 2023, eleven months ahead of its scheduled contractual end date, and will instead insource the load and haul activities.
Commenting on the acquisition, Clifford Elphick, Gem Diamonds’ Chief Executive Officer, said:
“This transaction brings a long standing and successful business relationship we’ve enjoyed with MMIC, since 2005, to an end. The transaction resolves important issues relating to governance and conflicts; and will lead to operational efficiencies and cost reductions being achieved.”
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