Gem Diamonds to Axe 240 Jobs and Close Mine Early

(IDEX Online) - Gem Diamonds has confirmed it will axe 240 jobs - a fifth of its workforce - at the Lestseng mine, in Lesotho, as part of a cost-cutting package.

The company also says the mine will close in 2035, four years earlier than planned, if market conditions persist.

The UK-based miner made both announcements in its Half Year 2025 Results, published on 4 September, in which it reported a 42 per cent drop in H1 revenue, an attributable loss of $11.7m (H1 2024: attributable profit of $2.1m) and net debt of $28.2 million (H2 2024: $7.3m).

Letseng is widely recognized as the highest dollar per carat kimberlite diamond mine in the world, but it has seen sales and prices slide amid a global downturn in demand for natural diamonds, compounded by a weak dollar and ongoing US tariff uncertainties.

Gem has already scaled back its waste mining operations and reduced executive salaries as part of its plan to reduce monthly costs by $1.4m to $1.6m.

Clifford Elphick, Gem's CEO, said: "The industry continues to face significant challenges. 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.

"H1 2025 production targets were achieved, however, revenue decreased significantly. In response, key decisions to adapt the mine plan to reduce costs, necessitated the unfortunate retrenchment of 240 employees at Letseng. While deeply regrettable, these actions position Letseng to operate sustainably."

Pic, courtesy Gem Diamonds, shows the 910-carat D-color Type IIa Letseng Legend, which sold for $40m in 2018.