Lucara to Sell all High-Value Diamonds through HB Group

By John Jeffay / July 19, 2020 / www.idexonline.com / Article Link

(IDEX Online) - Lucara is to sell all its larger rough diamonds through the Antwerp-based HB Group in what it describes as a "groundbreaking partnership".The Canadian miner has a reputation for high-value type IIa diamonds at its Karowe Mine, in Botswana, and was proud to announce its discovery of the 1,758-carat Sewelo (pictured), the world's second largest diamond, last April.It has been stockpiling all +10.8 carats, which account for around 70 per cent of its output, since early March.Now it has announced a unique, new supply arrangement, with purchase prices based on estimated polished outcome, with a true up paid on actual achieved polished sales thereafter, less a fee and the cost of manufacturing.  Lucara says it will benefit higher prices than it currently achieves at tender, regular cash flow, and a more efficient supply chain as well as tax benefits and beneficiation opportunities for the Botswana government.Eira Thomas, CEO said: "Building on the partnership established for the manufacturing of the Sewel?? ? earlier this year, Lucara is pleased to have now secured a broader supply agreement with HB to purchase all of our +10.8 carat rough diamonds, through to year-end. "It is our strong view that the success of our industry in these very uncertain times, requires better alignment between producers, manufacturers, and retailers to establish a healthier, more efficient global diamond supply chain. We are excited to be working with HB to support this new paradigm."

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