[miningmx.com] – ANALYSTS expressed concern about a possible “rescue invasion” of Lesotho – where it is claimed there was a military coup on August 30 – by South African forces saying the situation would have to be watched closely.
“Lesotho has had a long history of military coups and from first indications we would not expect the current action to have any impact on the country’s miners,” said Investec Securities in a note to clients.
Gem Diamonds operates the Letseng diamond mine in Lesotho while Firestone Diamonds and Lucara Diamonds have funded development projects in the country which is landlocked by South Africa.
“More worrying would be some action from South Africa, which stated that it would not tolerate unconstitutional change of government, that impacted on cross border flows of goods and services,” said Investec.
“[W]ith talk of a possible South African rescue invasion, one will have to keep an eye on the situation,” said Roger Bade, an analyst for Whitman Howard.
Lesotho prime minister, Thomas Thabane, is in emergency talks with South African president, Jacob Zuma, following an attempted coup in the southern African country, said Bloomberg News.
Citing Nelson Kgwete, a spokesman for South Africa’s Department of International Relations and Cooperation, the news agency said the meeting was also attended by the foreign ministers of Zimbabwe and Namibia.
“This morning President Zuma is meeting Prime Minister Thabane in Pretoria about developments in Lesotho,’ Kgwete said by phone.
Thabane fled Lesotho on August 30, saying the army tried to overthrow him. The military claimed it disarmed police officers who threatened to destabilize the nation.
