Lesotho Mining AS

Following the success of the Lesotho Mining RAAA, the ALSF provided continued support to the GoL in relation to the drafting and negotiation of a new Letseng Mining Lease Agreement and Shareholders Agreement in order to strengthen the GoL’s negotiation position with Letseng and to secure the best outcome for the Kingdom of Lesotho. The drafting and negotiation process took into account internationally recognised industry best practices, as well as the Extractives Industries Transparency Initiative. The ALSF re-engaged the same legal counsel with expertise in the mining sector (ENS Africa) which provided support on the Lesotho Mining RAAA, to ensure a thorough understanding of the issues and a high quality result. During the contract negotiations, the legal counsel was able to ensure more favourable contract terms for the GoL in relation to issues such as royalties, financing, local content, shareholders rights and corporate governance. These new agreements were entered into in September 2019, thus avoiding the continued unfair exploitation of the mineral resources of the Kingdom of Lesotho, while ensuring the GoL and the people of Lesotho the maximum benefit of their resources.