Economy of Lesotho Lesotho Highlands Water Project (LHWP), which was initiated in 1986. The LHWP is designed to capture, store, and transfer water from the Orange River system and send it to South Africa's Free State and greater Johannesburg area, which features a large concentration of South African industry, population and agriculture. At the completion of the project, Lesotho should be almost completely self-sufficient in the production of electricity and also gain income from the sale of electricity to South Africa. The World Bank, African Development Bank, European Investment Bank, and many other bilateral donors are financing the project. Diamonds are produced in
Geology of Lesotho yield and frequent springs. Steep terrain, rain and snow melt mean that Lesotho has a high risk of landslides. Lesotho has extensive diamond deposits in both kimberlites and alluvial gravel. The country has the highest concentration of kimberlite bodies in the world—a total of more than 400, including 343 dikes, 39 pipes and 23 blows. Northern Lesotho has an average of one kimberlite body for every 10 square kilometers. In spite of the large deposits, very few sites are mined and research is ongoing into alluvial deposits. The Karoo Supergroup hosts low-grade uranium and likely coal and coal-bed methane, although