Lucara Diamond Corp. says it has entered into a new diamond sales agreement with HB Group out of Antwerp, Belgium (HB), in respect of all qualifying diamonds produced in excess of 10.8 carats in size from its 100% owned Karowe Diamond Mine in Botswana. 

The company said in an update that under the terms of the 10-year deal with HB, 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 added that a further sales value uplift (“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 important segment of the Company’s production profile at better than conventional diamond industry tender prices.”

However, the new diamond sales agreement is subject to the approval of the company’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 in order to fund its operations and the Karowe Underground Project. 

Lucara President and CEO, William Lamb said the partnership reflects the company’s commitment to ensuring stability and sustainability in their 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,” Lamb said.

“We remain steadfast in our dedication to delivering exceptional quality and premium value from our diamonds to all stakeholders, even amidst external pressures. Together, we will continue to uphold the legacy of excellence that defines Lucara’s journey in the world of diamonds”.