The mining sector remains a cornerstone of Lesotho’s economy, offering attractive investment opportunities in diamonds, base metals, and industrial minerals. However, tapping into the sector requires full compliance with Lesotho’s legal and regulatory framework — including licensing, land rights, environmental obligations, and royalty payments.
This 2025 guide by Mayet & Associates, trusted legal advisors to mining houses and foreign investors in Lesotho, outlines everything you need to know about navigating mining law in Lesotho.
1. Overview: The Legal Framework Governing Mining in Lesotho
Mining activity in Lesotho is primarily governed by the:
- Mines and Minerals Act 2005 (as amended)
- Mining Rights Regulations
- Environmental Act 2008
- Land Act 2010 (for surface rights and resettlement)
- Income Tax Act and Royalty Regulations
All mineral rights in Lesotho are vested in the King in right of the Kingdom, held in trust for the Basotho nation. Rights to prospect, explore, and mine can only be granted by the Minister responsible for mining.
2. Types of Mining Licences in Lesotho
The Ministry of Natural Resources grants the following permits under the Act:
| Licence Type | Purpose | Validity |
| Reconnaissance Permit | General geological mapping | Up to 1 year |
| Prospecting Licence | Detailed exploration of mineral potential | Up to 3 years |
| Mining Lease | Extraction and sale of minerals | Up to 10 years (renewable) |
| Artisanal Mining Licence | Small-scale mining by individuals or cooperatives | 1–2 years |
| Gem Dealer’s Licence | Buying and selling uncut stones | Annual |
Each licence carries specific legal, tax, and reporting obligations. Failure to comply may lead to suspension or cancellation.
3. How to Apply for a Mining Licence in Lesotho
Step-by-Step Process:
- Conduct Preliminary Due Diligence – Identify mineral deposits and confirm land availability.
- Engage a Legal Advisor- Appoint a Lesotho-based attorney to assist with documentation and regulatory engagement.
- Submit Application to the Commissioner of Mines, including
- Obtain EIA Approval
- Applications involving land disturbance require prior environmental approval.
- Ministerial Approval & Gazette Notice – If successful, the licence is gazetted and granted by the Minister.
- Payment of Licence Fees and Royalties – Annual fees and royalties are payable based on mineral type and production volume.
4. Key Compliance Obligations
Mining rights holders must comply with:
- Quarterly and annual reporting on production and revenues
- Payment of royalties to the Government of Lesotho
- Land compensation and resettlement plans
- Health, safety & labour laws including provision of PPE and local employment targets
- Environmental rehabilitation obligations upon closure
At Mayet & Associates, we provide ongoing compliance support to ensure that your licence remains valid, and your operations are fully lawful.
5. Can Foreign Investors Apply?
Yes. Foreign companies are welcome to apply for prospecting or mining rights, provided they:
- Register a local entity or branch office in Lesotho
- Comply with exchange control regulations for repatriating profits
- Appoint a local legal representative and submit an operational plan that benefits the Basotho economy
We frequently advise foreign direct investors (FDIs) on structuring mining investments and navigating Lesotho’s regulatory landscape.
6. Dispute Resolution in the Mining Sector
Disputes over land, royalties, or licence suspension can be referred to:
- The Mining Board, an administrative body under the Ministry
- The High Court of Lesotho for judicial review
- Arbitration, where agreed in contract or under investment treaties
We represent clients in mining litigation, arbitration, and regulatory appeals to ensure lawful resolution of disputes.
7. Recent Legal Reforms & Outlook (2025)
The Lesotho government has committed to:
- Enhancing transparency in licence allocation
- Introducing mandatory local beneficiation policies
- Streamlining EIA procedures for junior miners
- Adopting the Africa Mining Vision (AMV) for sustainable extraction
Our attorneys stay up to date with policy changes, amendments to the Mines and Minerals Act, and investment incentives.
8. Why Choose Mayet & Associates?
- Offices in Maseru, serving domestic and cross-border clients
- Experts in mining, investment, and environmental law
- Advising clients on licence applications, compliance, contracts, land rights, and joint ventures
- Legal support for due diligence, community negotiations, and government relations
We offer practical, strategic legal solutions tailored to your mining venture in Lesotho.
Book a Consultation
Whether you’re a junior miner or an established investor, we are ready to assist with:
✅ Mining licence applications
✅ Environmental and tax compliance
✅ Local content and labour law
✅ Dispute resolution and licence renewals
📞 Call us today on +266 2231 2101 or email admin@mayet.law to schedule a mining law consultation with our legal team.