Lucara Diamond has terminated its diamond sales agreement with HB Trading due to their failure to meet financial obligations.
The diamond company first partnered with HB in 2020 to sell +10.8-carat rough diamonds from its wholly owned Karowe mine in Botswana.
These high-value diamonds historically accounted for about 60% to 70% of Lucara's annual revenues.
The diamond company also extended its diamond sales agreement with HB in November 2022, and it was expected to last until December 31, 2032.
"The Lucara production profile is unique in the diamond industry, and the company will continue to look at innovative sales mechanisms to maximise the value of our rough diamonds," said Lucara chief executive William Lamb.
The diamond company said it will sell Karowe's rough diamond production through the channels already in place, such as the Clara diamond sales platform, traditional tenders, and other value-added mechanisms for stones.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
