Lucapa Diamond has sold 3,963 carats, including a 64 carat top-colour, from the Mothae kimberlite mine in Lesotho into a cutting and polishing partnership with an unnamed “high-end” diamantaire for $2 million or $505 per carat.
Mothae was unable to market its diamonds through its regular tender channel in Belgium due to lockdowns and various restrictions being imposed by countries across the globe in order to prevent the spread of COVID-19.
It will receive the rough price upfront and following accounting for the procurement and diamond manufacturing costs, additional margins generated from the later sale of the diamonds beyond the mine gate will be shared equally between Mothae and the partner.
“The sale of diamonds into the cutting and polishing partnership in this environment provides Mothae with a level of price protection in that Mothae should receive additional margins from the onward sale of these diamonds,” said Lucapa managing director Stephen Wetherall.
Lucapa’s 40%-owned Lulo alluvial mining company Sociedade Mineira Do Lulo (SML) also last January entered into a cutting and polishing agreement with the diamond manufacturing group Safdico International, a subsidiary of Graff International.
Safdico, as a preferred buyer, can purchase up to 60% of Lulo’s annual alluvial rough production from SML as is permitted under Angola’s transformative new diamond marketing regulations.
Image credit: Lucapa Diamond