Gem, MMIC agree to terminate Letšeng load and haul contract
London-listed Gem Diamonds has reached agreement with Matekane Mining Investment Company (MMIC) to terminate MMIC's load and haul contract at the Letšeng mine, in Lesotho, with effect from December 1.
Letšeng's management had been considering options in respect of the contract following the election of MMIC owner Sam Matekane as Prime Minister of Lesotho in October 2022, which resulted in him being designated a politically exposed person.
The contract termination is 11 months ahead of its scheduled contractual end date.
The mine will now insource the load and haul activities and will acquire the mining equipment in use at Letšeng from MMIC. It will also offer employment to MMIC employees who are currently working exclusively for Letšeng, in line with operational requirements.
This will enable Letšeng to continue seamlessly with its mining activities.
"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," says Gem CEO Clifford Elphick.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation