The 10 extension erupts in 31 December 2032 under which Lucara’s +10.8 carat 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.
The Karowe diamond mine was fully commissioned in Q2 2012. Karowe, which means precious stone in the local language, is a large-scale asset with tonnage and throughput upside and is one of world’s foremost producers of large, high quality, Type IIA diamonds in excess of 10.8 carats, including the historic 1,758 Sewelô, the 1,109 carat Lesedi La Rona and the 813 carat Constellation.
Eira Thomas, CEO who confirmed the report noted the pricing mechanisms of the agreement with HB results in complete transparency within the value chain, creating important alignment between all participants in the value chain, and delivering regular cash flow at superior prices for this important segment of our production profile.
“It has been more than two years since Lucara initiated this transformational approach to sales of its’ highest value diamonds, working in collaboration with HB to create alignment along the value chain, differentiating diamonds from Karowe on the basis of provenance, excellence in manufacturing and a commitment to complete transparency for all stakeholders. For the first time in our 10-year history, we have insight on what becomes of each and every +10.8 carat 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.
“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 Eira Thomas.
“Over the past two years, we have fostered a close partnership with Lucara by providing unprecedented insight into the diamond value chain, using data and information to align interests and maximise positive impact. The Lucara – HB agreement reflects the renewed commitment of both companies to embrace a new approach to sourcing, transforming, and distributing mineral resources – based on equity, transparency and sustainability, providing meaningful benefits to all participants, including the people and communities of Botswana,” commented Oded Mansori, Co-founder and CEO of HB Antwerp.