Lesotho, whose economy depends on diamonds for over 20% of export earnings, is repositioning its mining strategy toward rare earth elements (REEs). Prime Minister Ntsokoane Samuel Matekane, speaking at the Africa Down Under 2025 conference in Perth, described REEs as the country’s “new jewels,” highlighting their presence in Lesotho’s coal deposits and their critical role in high-tech applications, renewable energy, and electric vehicle batteries.

Ntsokoane Samuel Matekane said “Diamonds will remain part of our crown . . . but our future crown will shine with new jewels: rare earths.”

The policy shift comes against a backdrop of structural pressures in the diamond sector. Global diamond prices remain at historic lows, demand is being reshaped by the rise of lab-grown diamonds, and mining companies are downsizing operations worldwide. In Lesotho, Gem Diamonds—the nation’s largest producer—reported a 42% revenue decline in H1 2025, triggering 240 job losses and raising the prospect of closing the Letseng mine four years ahead of schedule.

Matekane, who built much of his own wealth in diamonds, positioned diversification into critical minerals as both a strategic hedge and a growth opportunity. He extended an open call for international investors, joint ventures, and technology partnerships to accelerate exploration and development of REE projects. For Lesotho, success in this transition will hinge on mobilizing external capital, securing technical expertise, and building infrastructure to compete in the global critical minerals supply chain.