Lucara Diamond revives sales deal with gem trader HB Antwerp

Lucara Diamond has revived a gem sales agreement with polishing and trading company HB Antwerp, it said on Monday, five months after severing ties with the Belgian business.

Canadian miner Lucara said it will supply HB Antwerp with rough diamonds of 10.8 carats and above for 10 years from last December.

Lucara had terminated its relationship with HB Antwerp last September because of what it said was “a material breach of financial commitments”.

HB Antwerp declined to comment on the matter at the time and did not respond immediately to a request for comment on Monday.

Botswana, where Lucara mines diamonds at its Karowe project, has been reassessing plans to acquire 24% of HB Antwerp.

The two companies’ first diamond sales agreement was struck in 2020 and extended for 10 years in 2022.

Lucara said the purchase price for rough stones in its revised deal would be based on mutual agreement of the estimated value of polished diamonds, with a further payment based on actual achieved polished sales.

The pricing mechanism is expected to deliver regular cash flow, Lucara said.

“This partnership reflects our commitment to ensuring stability and sustainability in our operations,” said Lucara chief executive William Lamb.