Lucapa Eyes Increased Share in Lulo

RAPAPORT... Lucapa Diamond Corporation is in advanced discussions withthe Angolan government to secure a majority stake in its Lulo mine, it saidThursday. The company currently owns 39% of the 3,000-square-kilometerproject, which is based in the Lunda Norte region. State-ownedEndiama owns 51%, and private local company Rosas & Petalas holds a 10%share. Lucapa hopes to reachan agreement with the Angolan Ministry of Mineral Resources and Petroleum inthe first quarter of 2020. Angola has recently relaxed its rules requiring government ownership of a majority stake in diamond projects, LucapaCEO Stephen Wetherall told Rapaport News Thursday. "This [is] due to thenew government wishing to attract significant foreign direct investment intothe mining sector," he said.  Lulo regularly yields high-quality alluvial stones, with output atthe mine increasing 67% to 7,603 carats in the third quarter as the recoveredgrade jumped 88%, the company reported last month. During the period, sales ofrough rose 49% to $6.7 million, and the average price climbed 28% to $1,143 percarat. In 2016, Lucapa recovered a 404.2-carat diamond from Lulo, the largest rough in Angolan history. Lucapa believes it is getting closer to pinpointing the kimberlite source of its rough diamonds at Lulo, predicting it will hit the "mother lode"within the next two years, it noted in May. The company's stock rose 5% in early trading Thursdayfollowing the announcement. Image: Lulo mine. (Lucapa Diamond Company)