Botswana's Lerala Diamond Mine, which ceased operations in the fourth quarter of 2008 following the advent of the global financial crisis, is being re-opened by the UK-based Mantle Diamonds, the Mmegi.bw news site reports.

Operations at Lerala shut down in February 2009, leaving the equipment in situ. The government helped DiamonEx secure a loan from local banks with the mine's diamonds as collateral.

The mine was originally envisioned as a major economic hub for the country's Tswapong region, with a projected 10-year lifespan and an annual production potential of 330,000 carats. In 2008 DiamonEx sold its first Lerala diamonds – a parcel of 10,000 carats.

When Lerala closed, 285 workers lost their jobs. It is not yet known how many people will be employed when it restarts production.

The news of Lerala's re-opening comes on the heels of an announcement that the Damtshaa diamond mine , which has also been closed since early 2009, is on track to reopen in the first quarter of 2012 following repairs and renovation. In its last operating year, Damtshaa produced 500,000 carats of rough diamonds.