Government to ‘take over’ Mothae operations

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The Indian government plans to acquire a 70% stake in the Mosai diamond mine, giving it full control of the mine, which is currently owned by Australian mining giant Lucapa Diamonds.

The Mosai Diamond Mine is an open-pit mine located in Buta Bute that began commercial operations in 2019. The mine is known for producing large, high-value diamonds, including a 215-carat D-color Type Iia diamond, a 204-carat Type Iia diamond, and rare pink, blue, and yellow colored diamonds.

Natural Resources Minister Mohlomi Moleko confirmed?Sunday Express?On Friday, the government was considering acquiring Lucapa’s stake in the Butha-Bute mine.

This will give the government 100 percent ownership of the mine, which currentlySupervision30%?

“take over?riceThe government is considering selling the property, but this should not in any way undermine the process that the government has started?riceI (Lucapa),” Mr Moleko said.

Mr. Moleko is unwilling to elaborate?Say what?Is it not over yet?It is under consideration. It would be disadvantageous to elaborate on this point at this stage..

African governments are not generally known for their corporate acumen. If the mine is eventually taken over by the state, its future remains to be seen.

Lucapa announced its intention to sell the mine on May 282024,?explainThe company is reviewing its asset portfolio and considering all options for selling its stake in Mothae.

The company will set up a data room for interested parties and will provide updates on the divestment process in the coming weeks.

The disposal plan is aimed at streamlining the company’s portfolio and focusing on core assets in Africa and Australia.

Lucapa Chairman Stuart Brown saidassistance?company?used to beis eager to complete the divestment process and move forward with its new strategic direction.

The potential sale of the Mothae diamond mine has generated interest from industry players and investors. Lucapa Managing Director Nick Selby expects strong interest from both within and outside the diamond industry.

“We have been keeping our partner, the Lesotho government, informed and they have also expressed interest in taking over the business. We will also be keeping our shareholders informed. It is still early days but progress is good,” he said.