Lesotho's biggest diamond mine lays off 20% of its workers

Lesotho's biggest diamond mine, Letseng, has laid off 240 workers, a fifth of its workforce, as it battles persistently low gem prices due to weak demand and an uncertain global economic environment, parent company Gem Diamonds said on Thursday.

Diamonds are vital to Lesotho's economy, with the sector contributing up to 10% of its GDP and providing employment for thousands in the country of slightly over 2 million people. Diamonds are also Lesotho's major export commodity, along with textiles and clothing.

Gem Diamonds said its Letseng mine, which produces some of the world's largest and most valuable gems such as the 910-carat "Lesotho Legend", had revised its mine plan and cut jobs to reduce costs.

"Sustained pricing pressure, softer demand in key markets, ongoing macroeconomic and geopolitical uncertainty, and tariff uncertainties in respect of India, combine to create difficult trading conditions," Gem Diamonds CEO Clifford Elphick said in a statement.

Half-year losses