JCI Sales Stake in Letseng, Lesotho Increases Holding to 30%

Embattled JCI has agreed to sell its 76 percent holding in the Letseng diamond mine in Lesotho for a reported $126.4 million. The new majority holder will be Gem Diamonds.

According Creamer Media’s Mining Weekly, the Lesotho government will raise its stake in the diamond mine from 24 percent to 30 percent. Gem Diamonds will reportedly hand over six percent of the holding, half of it as a loan, to the government of the African kingdom.

Gem Diamonds is owned by Clifford Elphick, former managing director of E Oppenheimer & Son. The new owner took over operations of the diamond mine earlier this month.

The Letseng diamond mine is known for its high value, +100 carat diamonds, but noted for its very low grade – an estimated one carat per 50 tons of processed ore. In comparison, BHP Billiton’s Diavik mine currently yields an average of one carat per two tons. The Letseng mine was previously owned by De Beers, who closed it in the 1980s after it was deemed uneconomical.