Lucara to sell all +10.8 ct diamonds to HB for the rest of 2020

Lucara Diamond has signed a novel supply agreement with Antwerp-based HB Group of all diamonds produced at Karowe mine in excess of 10.8 carats for the remainder of 2020.
Large, high value diamonds in excess of 10.8 carats in size account for about 70% of Lucara's annual revenues.
The company continued fully operational throughout the Covid-19 pandemic and made a deliberate decision not to tender any of its +10.8 carat inventory after early March 2020 due to the uncertainty caused by the global crisis.
"This agreement will deliver regular revenues on superior pricing terms to those currently being achieved at tender, and, helps position Lucara to move forward with key underground expansion activities for Karowe in 2020,” said company chief executive Eira Thomas.
“It is our strong view that the success of our industry in these very uncertain times, requires better alignment between producers, manufacturers, and retailers to establish a healthier, more efficient global diamond supply chain.”
The company said the purchase price paid for the +10.8 carat rough diamonds will be based on the estimated polished outcome.
This will be determined through state of the art scanning and planning technology, with a true up paid on actual achieved polished sales thereafter, less a fee and the cost of manufacturing. 

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished