Lucara and HB Trading extend sales agreement

17th November 2022 By: Creamer Media Reporter

Vancouver-based Lucara Diamond Corp has extended the sales agreement with HB Trading for the high-value diamonds from the Karowe mine, in Botswana, for another ten years.

Under the agreement, Lucara’s +10.8 ct production is sold at prices based on the estimated polished outcome of each diamond, 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.

“For the first time in our ten-year history, we have insight on what becomes of each and every +10.8 ct rough diamond produced from our mine, participating in each step of the planning and manufacturing process right through to the final polished sale. Not only has this approach stabilised prices for our most valuable production segment, it has demonstrably grown demand, a core objective,” said Lucara CEO Eira Thomas.

Lucara first partnered with HB in 2020 to sell Karowe’s large, high-value diamonds, which historically accounted for 60% to 70% of its yearly revenues.

The ten-year agreement is consistent with the terms of the previous arrangement with HB, with refinements to more accurately reflect how the parties have been working together.

“As one of the world's most important sources of large, high value type IIa diamonds, our approach provides consumers with complete confidence in the origin of their diamonds and full insight on how our business is governed, delivering on our commitments to industry-leading best practice in responsible mining in Botswana,” said Thomas.