Liqhobong tender to test recovery of diamond market

Liqhobong Diamond mine says it plans to tender some of its diamonds next month to test the level of market recovery.

The Liqhobong mine in Lesotho, which has been closed since April due to the coronavirus pandemic, has 64,700 carats of diamonds ready for sale.

During the closure, the mine has been carrying out care and maintenance work.

Firestone Diamonds, the company that owns the mine, says the available quantity of diamonds will be divided into at least two parts and put up for tender to raise much-needed funds.

The company says it needs funds for operating expenses.

Commenting on the tender, Firestone Diamonds says: “The batch will test the market to determine the degree of recovery in diamond prices, especially for the range offered by Liqhobong, which in turn will be the basis for a possible start-up of the mine”.

In another development, Firestone Diamonds says it has secured an agreement with Absa – one of its creditors, to postpone debt repayment until September 2021.

The company says it is still negotiating with other creditors to find long-term solutions to settle oustanding debts.