Gem Diamonds, a London-listed diamond producer, has announced an updated life-of-mine plan for its Letšeng mine in Lesotho, alongside a two-year extension of its $71.7 million revolving credit facilities. The updated plan introduces critical operational improvements designed to enhance efficiency, reduce costs, and ensure the mine’s long-term sustainability, reflecting the company’s strategic focus on responsible and cost-effective mining practices.
A major highlight of the revised plan is the adoption of steeper slope designs for the final open-pit cutback of the satellite pit. This change, supported by comprehensive structural and lateral support systems, enables the company to significantly reduce the ore-to-waste stripping ratio for Satellite Cut 6 West (SC6W) from 1:6.9 to 1:2.1. This adjustment translates to a reduction in waste material from 87.9 million tonnes to 21.5 million tonnes, resulting in an estimated $180 million in cost savings on future waste-stripping operations. The volume of SC6W ore has also been refined, dropping from 12.8 million tonnes to 10.4 million tonnes, reflecting a more accurate assessment of resources.
The slope redesign is based on an in-depth geotechnical stability analysis conducted by industry experts. By optimizing slope angles in the competent basalt hard-rock sections of the satellite pit, Gem Diamonds has ensured safer and more efficient mining operations. Advanced lateral support and rockfall mitigation measures have been incorporated into the design to minimize risks and maintain operational integrity. This optimization effort, which has been under review since mid-2023, demonstrates the company’s dedication to resource recovery without compromising safety standards.
In tandem with these operational upgrades, Gem Diamonds has successfully extended its $71.7 million revolving credit facilities, which were originally set to expire on December 21, 2024. The new expiration date of December 21, 2026, provides the company with additional financial flexibility to support ongoing operations and implement the updated mine plan. The extended credit facility serves as a financial buffer, allowing the company to address both immediate operational needs and long-term strategic priorities.
The Letšeng mine, known for its production of some of the world’s largest and most valuable diamonds, remains at the heart of Gem Diamonds’ portfolio
