Lucapa Diamond says Lulo alluvial mining company, Sociedade Mineira Do Lulo (SML) is set to receive $4 million under the partnership agreement with diamond manufacturer Safdico, a subsidiary of Graff International. This will comprise of $1.5 million payment in respect of SML’s share of profits from the cutting and polishing or sale of run of mine Lulo diamonds sold to Safdico in 2019 under the partnership agreement as well as $2.5 million payment for the purchase of the Lulo 46 carat pink rough diamond.
Lucapa, which has a 40% stake in SML said the firm will retain a share in the margins generated from the resultant sale of diamonds polished from the pink stone.
The 46-carat pink diamond from Lulo Image credit: Lucapa
Under the partnership agreement, SML would be paid up front for the rough market value of the Lulo diamonds sold to Safdico, with both companies sharing in the resultant margins generated.
Safdico, as a preferred buyer of SML, can purchase up to 60% of Lulo’s annual rough production as is permitted under Angola’s transformative new diamond marketing regulations.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
