Making a sustainable impact in our communities

Gem Diamonds is committed to working closely and in collaboration with our stakeholders. Our project affected communities (PACs) play a vital role in the sustainability and success of our business, and we are committed to ensuring that our PACs experience real, sustainable benefit from the existence of our operations.

As discussed in our social pillar section, Gem Diamonds will, from 2020, enter into a new rolling cycle of five-year CSI plans and commitments. Our current flagship projects will, however, continue to be supported to ensure sustainability upon handover to communities or completion. Over the years, we have undertaken several initiatives to sustainably assist our PACs, focusing on agricultural advancement, education and infrastructural expansion:

The Lesotho Legend Community Project

Following the discovery of the 910ct Lesotho Legend, M5 500 000 was allocated to the Lesotho Legend Community Project to benefit communities around the mine.

Following extensive community consultations, and in line with the aim of creating sustainable agricultural and social initiatives, it was determined that the Lesotho Legend Community Project would involve the construction and development of a commercial egg farming co-operative.

A feasibility study highlighted that this project's viability and sustainability would initially depend on demand driven by the proposed expansion of the Lesotho Highlands Water Project. During the process of establishing a viable and sustainable business plan, it was assumed that the anticipated expansion to the Lesotho Highlands Water Project would have proceeded according to the schedule laid out. However, material delays in its implementation have negatively impacted the available market for the egg farming co-operative and, in turn, the commencement of the Lesotho Legend Community Project.

We are currently investigating the optimum operating model taking into account this set back and other related barriers to the sustainability of this project. Despite these challenges, however, we believe that this initiative has the potential to create viable and sustainable socio-economic growth well into the future, meeting community needs and contributing meaningfully to local economic development.

Dairy project

The Mokhotlong dairy farm project created a dairy business providing locally supplied pasteurised and packaged fresh milk as an alternative to milk imported from South Africa. The dairy farm owns 32 cows with a projected output of 450 litres a day. Mentoring, business coaching and education in animal welfare is provided by the local non-governmental organisation that works with farmers on the ground.

However, largely as a result of the delay in the expansion of the Lesotho Highlands Water Project, this longstanding initiative has unfortunately also suffered unexpected setbacks. It was anticipated that this project would be handed over to the community in 2019 to operate as a going concern independent of Gem Diamonds’ support. However, the Lesotho Highlands Water Project delays have impacted the immediate sustainability of this project, in turn delaying the anticipated hand over to the community.

We remain confident that given the resumption in operation of the Lesotho Highlands Water Project, the dairy farm will operate sustainably. In the meantime, additional research is being undertaken in this regard while we await certainty around the commencement of the next phase of the Lesotho Highlands Water Project.

Footbridge

Following engagement with local community leaders regarding their most pressing needs, Letšeng constructed a pedestrian footbridge over the Khubelu River to provide safe crossing for all community members during the rainy season.

The footbridge enables children to get to school safely and provides access to essential services and local infrastructure. The footbridge was completed and officially handed over to the community in May 2019, with local government and the community leaders commenting how appreciative they were of Gem Diamond’s delivery on its promises and continued support to its PACs.

Scholarships

Our scholarship programme is ongoing, and during 2019, six local students completed their studies in the fields of Metallurgy Engineering, Mining Engineering, Mineral Resource Management and Emergency Medical Care. This brings to 49 the number of students sponsored by Letšeng Mine since the inception of our scholarship programme in 2008.

On 30 July 2019, Letšeng and the Lesotho Ministry of Mining celebrated the achievements of the past recipients of Letšeng Diamonds’ scholarships at a ceremony that was held at Maseru. The ceremony was an opportunity for scholarship alumni to share their experiences of the opportunities these scholarships have presented in studying and subsequent employment.

Classroom build

On 30 July 2019, Letšeng and the Lesotho Ministry of Mining celebrated the achievements of the past recipients of Letšeng Diamonds’ scholarships at a ceremony that was held at Maseru. The ceremony was an opportunity for scholarship alumni to share their experiences of the opportunities these scholarships have presented in studying and subsequent employment.