https://www.miningweekly.com
Botswana|Building|Diamonds|Flow|Mining|PROJECT|supply-chain|Technology|Underground|Flow|Operations
Botswana|Building|Diamonds|Flow|Mining|PROJECT|supply-chain|Technology|Underground|Flow|Operations
botswana|building|diamonds|flow-company|mining|project|supply chain|technology|underground|flow-industry-term|operations

Lucara signs new ten-year diamond sales agreement with HB Group

An image showing Lucara's Karowe mine in Botswana

Karowe mine

19th February 2024

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

Canadian mining company Lucara Diamond Corp has entered into a new diamond sales agreement (NDSA) with processer and trader HB Group out of Antwerp, Belgium, in respect of qualifying “special” diamonds – those weighing more than 10.8 ct – recovered from the Karowe mine, in Botswana.

Under the terms of the ten-year NDSA with HB, the purchase price paid for Lucara’s “special” rough diamonds shall be based on the mutual agreement of the estimated polished outcome, determined through scanning and planning technology, together with external benchmarks and leveraging over a decade of Lucara’s “special” diamond sales data.

A further sales value uplift, or top-up, will be paid to Lucara based on actual achieved polished sales thereafter, less a fixed margin payable to HB.

This pricing mechanism is expected to deliver regular cash flow for this segment of Lucara’s production profile at better than conventional diamond industry tender prices, the company points out.

It mentions that anticipated benefits of the NDSA include regular cash flow in support of the ongoing development of the Karowe underground project; and significant potential revenue upside, especially for large complex rough diamonds, based on historical performance, providing a premium on diamond sales.

Lucara further expects to benefit through ongoing alignment with the government of Botswana’s strategy to diversify downstream and participate in the upside of polished diamond revenue.

It also anticipates streamlined diamond evaluation, sales reporting and payment mechanisms, and the creation of an efficient and restructured, large and high-quality diamond supply chain, which has the potential to meet the demands of high-value brands.

The NDSA is subject to the approval of Lucara’s project lenders.

Upon such approval, the agreement terms will be effective retroactively from December 1, 2023.

Since that time, Lucara has continued to supply qualifying rough diamonds to HB to fund its operations and the Karowe underground project.

“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. 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. We remain steadfast in our dedication to delivering exceptional quality and premium value from our diamonds to all stakeholders, even amidst external pressures,” says Lucara president and CEO William Lamb

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024
Resources Watch
Resources Watch
17th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.196 0.303s - 110pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: