In the previous blog it was mentioned that the BVI-domiciled company Gem Diamond Mining Company of Africa Limited is in the list of companies involved in legal proceeding with Letseng Diamonds. However, there are more positive news concerning these companies. For example, it would be interesting to know that Letseng diamond mine, which is actually the world’s highest-altitude (3.1km) diamond mine, is famous for having the highest percentage of huge diamonds produced (more than 10 carats), with the highest dollar ratio per carat among all the rest diamond mines. The world average is about US$70/carat, while the average in Letseng was over US$1,000/carat during 2004.
The latest find, named the “Lesotho Promiseâ€, is a 603 carat diamond stone of exceptional colour. It was unearthed on 22 August 2006 in the mine, which was recently acquired by the BVI company Gem Diamond Mining Company of Africa Ltd., and is partially owned by the Lesotho government. The find was reported on the 4th of October 2006, as the largest diamond stone of this century and the 15th largest diamond ever found. The rate of the stone is ‘D’ – the top colour band for diamonds.
Clifford Elphick, CEO of the BVI company, described the discovery of a 603 carat diamond at the firm’s Letseng mine in Lesotho as “a fantastic jewellâ€. The diamond has been put up to sale for US$12.4 million, through a private tender at an auction which took place on 9th October 2006 in Antwerp, Belgium. The South African Diamond Corporation is planning to sell the diamond for more than 20 million dollars after it is cut.
Fortunate BVI-registered diamond mining company is expecting to list on the London Stock Exchange before the end of the year, however litigation with Letseng Diamonds is not expected to come to its end so quickly. It was noted by Elphick that capital raised to finance the company, including its R900m to R1 billion acquisition of Letseng was raised in London and shareholders preferred the company to be listed there. There were no plans to list in Johannesburg, partly for the reason that the company’s operations were restricted to Lesotho.