The royalty payable by Gem Diamonds Ltd. to the government over diamonds sold from its Letseng mine in Lesotho increased to 10% from 8% as part of a 10-year renewal to the mining lease, in line with the country's 2005 Mines and Minerals Act.
The company also has an exclusive right to renew the lease for a further 10 years, according to the Oct. 4 release.
The increase in the royalty rate is effective Oct. 3.
