Lesotho’s biggest diamond mine, Letšeng, has laid off around 240 workers, 20% of its workforce, in a bid to reduce costs amid a sustained downturn in the global diamond market, Reuters reported. The mine, operated by Gem Diamonds, recorded a first-half net loss of $11.7 million, compared with a $2.1 million profit in the same period a year ago.
Company filings showed revenues plunged 42% year-on-year, with the average price of rough stones falling 26% to $1,008 per carat. Production also slipped to 47,125 carats from 55,873 in 2023, while a $10.7 million impairment charge was booked against the mine’s valuation, figures shared by Reuters revealed.
Management attributed the crisis to weakening demand across key markets, compounded by tariff uncertainty in India, where most diamonds are cut and polished, alongside wider geopolitical and macroeconomic headwinds. CEO Clifford Elphick stressed that the restructuring was essential to preserve financial stability and secure the mine’s long-term future, as highlighted in the company’s statement.
Analysts warn the layoffs will add pressure to Lesotho’s fragile economy, where diamonds contribute up to 10% of GDP and support thousands of livelihoods. They note that the price slump, exacerbated by competition from lab-grown stones and currency volatility has cut global diamond prices by around 35% from 2022 highs, industry observers cited by Reuters explained.
