The global diamond market may be facing a challenging period, but the Kingdom of Lesotho is not sitting idle.

In an address at the Africa Down Under conference, in Perth, Prime Minister Sam Matekane unveiled an ambitious dual-track strategy designed to navigate current headwinds, while polishing a new facet of Lesotho’s mineral wealth: rare earth elements (REEs).

Matekane, a businessman-turned-politician, admitted that the diamond industry was in a “difficult, transitory period”.

Prices are at historic lows, demand is being reshaped by synthetic diamonds, and thousands of workers are being retrenched globally.

Lesotho’s own mines are feeling the pinch, with two of its four operations on care and maintenance and others operating on thin margins. Producers are even requesting royalty payment exemptions to stay afloat.

Despite this “gloomy picture”, Matekane exuded optimism. “We believe this downturn will pass”, he declared, emphasising Lesotho’s commitment to supporting its mines through temporary relief measures and doing what it can to prop up the natural diamond market.

He highlighted the Lesotho people’s world-class expertise, noting that 90% of employees in their mines are Lesotho nationals – engineers, geologists and operators who “have mastered complex kimberlite operations at high altitude with resilience, efficiency, and innovation”.

But Lesotho’s vision extends beyond diamonds. The Prime Minister outlined an early-stage strategy to diversify into critical minerals, particularly REEs, using the human capital developed through diamond mining as the bedrock from which to launch its new mining strategy.

Recent studies, he revealed, have uncovered “rather enormous potential” in Lesotho’s old coal deposits, long considered to have little value. These are, in fact, rich in rare earths.

“Lesotho is not only a diamond country. We now have the possibility to become a reliable source of critical minerals that the world urgently needs for the green energy transition and digital economy,” Matekane said.

“This opens the door to a new industry that could diversify our economy, create jobs, and strengthen Lesotho’s role in global supply chains.”

The Lesotho government has adopted a dual-track strategy, designed with prospective investors and partners in mind.

“Firstly, we aim to stabilise the diamond sector by putting in place temporary measures to support operations, restore investor confidence and keep jobs secure. This creates the foundation for ongoing production and for new capital to flow into the country.

“Secondly, we plan to diversify into critical minerals by opening up exploration of REEs, and therefore we invite you as investors and partners to join us in joint ventures, technology partnerships, and new projects that will grow Lesotho.”

The country is developing a “forward looking” national mining strategy and regulatory framework, which is focused on opening up transparent exploration opportunities for REEs, in particular, across the entire country.