Lesotho Water and diamonds are Lesotho's significant natural resources. Water is used through the 21-year, multibillion-dollar Lesotho Highlands Water Project (LHWP), under the authority of the Lesotho Highlands Development Authority. The project commenced in 1986. The LHWP is designed to capture, store, and transfer water from the Orange River system to South Africa's Free State and greater Johannesburg area, which features a large concentration of South African industry, population, and agriculture. Completion of the first phase of the project has made Lesotho almost completely self-sufficient in the production of electricity and generated approximately US$70 million in 2010 from the sale of
Mining industry of Lesotho Mining industry of Lesotho The mining industry of Lesotho is mostly concentrated on diamond mining and as such the mining sector in the country has not played any significant role in furthering its economy. Apart from diamonds, the country's main mineral resources have been identified as base metals, clays, dimension stone, sand, gravel and uranium. The lack of initiative to extract other minerals commercially is mainly attributed to the inadequacy of infrastructure and finances. Between 2000 and 2011, the percentage of GDP contributed by diamond mining to Lesothos economy rose from "virtually zero" to about 4%. The mining of diamonds