The Lucapa Diamond Company is an Australia-based diamond miner and explorer with assets across Africa and Australia. It owns approximately 40% interest in Lulo Mine and approximately 70% interest in Mothae Kimberlite. Lucapa Diamond Company Limited along with its Lulo Alluvial Mine partners, Endiama and Rosas & Petalas announced that four incredible diamonds were mined from the Lulo mine. They garnered $17.063 million at the diamond tender. The exchange was held by Sodiam E.P in Luanda, Angola. The Lulo diamonds consisted of a grand total of 609 carats of 4 Type IIa diamonds weighing 41 carats, 123 carats, 208 carats, and 235 carats each.
The Lulo Mine is located in the Lunda Norte province of Angola. The mine is known for producing high-quality alluvial diamonds from the terrace and floodplain deposits along the Cacuilo River. The mine has a 35-year mining license and spans across 218 square kilometers. For example, type IIa diamonds are the most chemically pure diamonds and have the highest thermal conductivity. These type IIa diamonds are typically colorless or near-colorless. However, they can also be gray, light brown, light yellow, or even light pink. Type IIa diamonds are very rare in nature; however, due to the manufacturing process, many lab-grown diamonds grow to Type II a.
During an interview, Lucapa's managing director Nick Selby expressed his optimism for the diamond market in the coming new year. He cited the strength of the demand for exceptional, rare and high-value stones. Furthermore, the resumption of rough diamond imports by India is promising for the market. Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), told Rapaport News Wednesday that senior trade figures decided at a meeting agreed not to extend the freeze beyond its planned end date. Shah explains that a strengthening of sales in the US ahead of the holidays and a reduction in manufacturers’ inventories have put the sector in a better position than when the two-month moratorium began. The GJEPC will urge miners and manufacturers to remain cautious about how much rough enters the supply chain, he added.
The GJEPC and four other Indian organizations issued a plea in late September calling for the country’s diamond industry to stop importing rough for two months beginning October 15. At the time, the trade bodies said they would review the situation in the first week of December before deciding how to proceed. They also stressed that the pause was not mandatory, and some companies have continued to bring rough into the country. India’s rough-diamond imports rose 9% year on year to $1.02 billion in October, partly reflecting activity in the first half of the month. Polished prices stabilized last month, with the RapNet Diamond Index (RAPI™) for 1-carat stones rising 0.8%. It was still down 20.7% for the year to date. Signet Jewelers CEO Gina Drosos said Tuesday in an earnings call for investors that "the natural diamond oversupply situation, which has been pressuring retail prices, is beginning to abate.”
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Lucapa Diamond Company is a rough diamond supplier.[/caption]
The stakes were understandably high as the government and De Beers negotiated a new 10-year sales contract and 25-year mining license for Debswana. They had to seek measures that would bring additional value to a now-maturing local industry. The deals were scheduled for 2020 but were postponed during COVID-19 and prolonged another two years due to reported sticking points in the discussions. Speaking at the summit, Masisi and Cook expressed confidence the agreement they forged would prove to be a game changer for the country and the industry. “The government of Botswana and De Beers Group have entered into a historic agreement which is guaranteed to transform Botswana’s diamond story, showcasing an unwavering partnership that champions sustainable economic progress,” Masisi said.
A new deal between De Beers and the government of Botswana is being seen as a potential catalyst for growth in the natural diamond market. The board of Debswana, a partnership between De Beers and the Botswana government, has approved a $1 billion investment for the next phase of its underground project at the Jwaneng mine. De Beers announced on Wednesday that this phase will involve sampling the kimberlite pipes and building the infrastructure for the transition to underground mining. The work will begin in May, the company said. Once this phase is completed, the Jwaneng diamond mine will need two more phases of development to “ensure long-term future production at the mine in a context of shrinking long-term diamond supply,” the company stated.
De Beers CEO Al Cook said that Jwaneng is “a key pillar of both the De Beers business and the Botswana economy.” He added that “the global supply of natural diamonds is declining, so advancing the Jwaneng underground project generates new value for investors, introduces new technology to the country, develops new skills for our workforce, and delivers new gems for customers around the world. This investment is consistent with our strategy to focus on investing in the highest-quality projects.” The Jwaneng diamond mine has produced an average of about 11 million carats per year since it started operating in 1982.