PERTH (miningweekly.com) – Diamond miner Lucapa Diamond Company has flagged a possible legislative change in Lesotho, which could affect its operations.
A proposed Value Added Tax (VAT) Amendment Bill is currently under consideration in the Kingdom of Lesotho, which could result in the diamond industry in Lesotho no longer being able to claim back and be refunded their input VAT currently paid on the goods, services and capital items procured for day-to-day operations.
Lucapa told shareholders on Thursday that the company, along with fellow miners and members of the Chamber of Mines and other key stakeholders, have made presentations to and constructively engaged with the relevant authorities on the impact the passing of the VAT Amendment Bill could have on the Lesotho diamond industry.
The Chamber of Mines has been advised by the Ministry of Mining that the VAT Amendment Bill process has been paused pending further review and interaction with key stakeholders.
Lucapa holds the Mothae diamond mine in Lesotho, which contributed nearly 21% of the ASX-listed company’s attributable mining earnings in 2021.