Lucara Diamond has signed a new 10-year diamond sales agreement with HB Antwerp concerning all diamonds produced more than 10.8 carats in size from its 100% owned Karowe Diamond Mine in Botswana.
The purchase price paid for Lucara's +10.8 carat rough diamonds shall be based on the mutual agreement of the estimated polished outcome, determined through state-of-the-art scanning and planning technology, together with external benchmarks and more than a decade of Lucara's special stone sales data.
It said a further sales value uplift will be paid to Lucara based on actual polished sales thereafter, less a fixed margin payable to HB.
This pricing mechanism, said Lucara, is expected to deliver regular cash flow for this segment of the company's production profile at better than conventional diamond industry tender prices.
"As we navigate through the ever-evolving landscape of the diamond industry, I'm pleased to announce Lucara's strategic decision to re-enter into a long-term supply agreement with HB Antwerp,” said Lucara chief executive William Lamb.
“This partnership reflects our commitment to ensuring stability and sustainability in our operations. Our collaboration with HB Antwerp presents an opportunity to further enhance our position in the market, building on the knowledge of the past and the understanding of the quality of the polished diamonds produced from our Karowe diamonds.”
Lucara said the agreement will ensure regular cash flow to the company, which will support the ongoing development of the Karowe Underground Project.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
