Lucapa prepares to sell premium-value Angolan Lulo diamonds onto market

Lucapa Diamond Company ASX LOM sell premium value Angolan Lulo diamonds market
Lucapa Diamond Company has selected six top colour premium-value white diamonds from Lulo to sell onto the market.

Lucapa Diamond Company (ASX: LOM) and its partners are preparing to sell select Lulo premium-value diamonds through Angola’s new marketing channels after the country’s recent diamond sector reforms pave the way for producers to have greater autonomy on selecting their own buyers.

Until now, diamond producers in Angola have complained that they are forced to sell their diamonds to middlemen in the region at below international prices, which cuts potential profits.

Lucapa and its partners Empresa Nacional de Diamantes and Rosas & Petalas have selected six top colour white diamonds from Lulo, with each weighing 114 carats, 85ct, 75ct, 70ct, 62ct and 43ct, with a 46ct pink diamond also to be sold onto the market.

“The discussions with our Angolan partners regarding the policy changes taking place in the Angolan diamond sector have reached a stage where we are now able to plan for the sale of these large premium-value Lulo diamonds held over from previous sales,” Lucapa managing director Stephen Wetherall said.

“We look forward to marketing these exceptional diamonds as soon as the necessary arrangements are in put in place to continue showcasing Angolan diamonds to the world,” he added.

The latest sale from Lulo production comprised a parcel of 2,531ct and generated the partners US$2.5 million.

First diamond exports from Mothae mine

Meanwhile, Lucapa has also reported it has exported its first parcel of diamonds from its Mothae kimberlite diamond mine in Lesotho.

The parcel comprised 2,500ct, with the diamonds recovered from the ongoing bulk sampling program at the mine.

According to Lucapa, the parcel includes two yellow diamonds weighing 89ct and 25ct, as well as other special diamonds weighing up to 28ct and small pink diamonds.

The diamonds were exported to Belgium’s global diamond trading centre Antwerp.

Lucapa owns 40% of the alluvial diamonds extracted from Lulo and 39% of the kimberlite diamonds. At Mothae, Lucapa holds a 70% stake in the project.

The company’s other assets include an 80% stake in the Brooking project in Australia and a 100% of Orapa in Botswana.

Lorna has more than 10 years' experience as a finance journalist and editor. She has written for numerous industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has also covered a myriad of small and large cap ASX and dual-listed stocks.