Lucara Diamond revives sales deal with gem trader HB Antwerp

Lucara Diamond

19/02/2024 07:56

GABORONE, Feb 19 (Reuters) - Lucara Diamond  LUC.TO  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.
    

 (Reporting by Brian Benza in Gaborone
Additional reporting by Felix Njini in Johannesburg
Editing by David Goodman)
 ((Felix.Njini@thomsonreuters.com; Reuters Messaging:
felix.njini@thomsonreuters.com))