New Mothae Owners put 400 Workers on Forced Leave
July 08, 25
(IDEX Online) - All 400 workers at the Mothae diamond mine, in Lesotho, have been put on forced leave by the deposit's new owners and have had their wages halved, according to their union.
The Independent Democratic Union of Lesotho (IDUL) says the move is in breach of labor laws and collective bargaining agreements.
"Market volatility is not an excuse to withhold full wages," said Glen Mpufane, of IndustriALL, a global federation of mining and other workers to which IDUL is affiliated.
"Diamond mining companies must plan for booms and slumps rather than sacrificing workers' wages."
Australian miner Lucapa offloaded its 70 per cent stake in the mine to local mining and construction company Lephema Executive Transport which provided it with long-term contract mining services.
The deal, for a nominal AUD 10,000 (USD 6,660) was completed last September. The remaining 30 per cent is owned by the Lesotho government.
Lucapa subsequently appointed voluntary administrators after sustained low diamond prices and operational challenges left it unable to meet its financial obligations.
IDUL said Lephema had blamed "a slow diamond market in Europe," for the layoffs, although the company has not commented publicly.
The sale raised questions about the long-term viability of the mine, which began commercial operations in late 2018 with an estimated lifespan of 20 years.
Mothae has produced over 150,000 carats since it started commercial production in 2019, bringing in more than $100m in revenue.
We have approached Lephema Executive Transport for comment.