Antwerp-based HB Will Buy All +10.8ct Lucara Diamonds

Rough Market
16/07/2020 07:11

Lucara Diamond Corp has announced a unique partnership with the Antwerp-based company HB in which HB will buy all of the diamonds in excess of 10.8ct produced at the Karowe mine in Botswana, since March, and for the remainder of the year. About 70% of the rough mined by Lucara consists of larger, high value stones, and none of those have been up for sale since the pandemic broke out. In this unique supply agreement, HB will pay a price based on the estimated polished outcome, based on scanning and planning results. Any added value generated after the sale of the polished, minus manufacturing cost and a fee, will be added and paid to Lucara. Lucara CEO, Eira Thomas, in the release comments that through this supply agreement, the miner secures "regular revenue and superior pricing terms" compared to those received through tender, which will help the company to garner sufficient cash flow for the mine's underground expansion. Oded Mansori, Co-Founder of the HB Group said the deal fits into the company's vision of a transparent and sustainable value chain through innovative technologies.

Earlier this year, Lucara, HB and Louis Vuitton announced a collaboration to cut and polish the 1,758 carat Sewelô diamond recovered from the Karowe Diamond Mine in Botswana in April 2019.