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
History of Lesotho 1855. The country set up diplomatic channels and acquired guns for use against the encroaching Europeans and the Korana people. Territorial conflicts with both British and Boer settlers arose periodically, including Moshoeshoe's notable victory over the Boers in the Free State–Basotho War, but the final war in 1867 with an appeal to Queen Victoria, who agreed to make Basutoland a British suzerainty. In 1869, the British signed a treaty at Aliwal with the Boers that defined the boundaries of Basutoland and later Lesotho, which by ceding the western territories effectively reduced Moshoeshoe's kingdom to half its previous size. The extent