Canada-based diamond miner Lucara Diamond has extended its sales agreement with HB Trading to sell +10.8-carat rough diamonds from its Karowe mine in Botswana, for another ten years, Rough & Polished reports.
Under the contract, Lucara’s +10.8 carat production “is sold at prices based on the estimated polished outcome of each diamond, determined through state-of-the-art scanning and planning technology, with a true-up paid on actual achieved polished sales thereafter, less a fee and the cost of manufacturing.”
Lucara and HB partnered in 2020 to sell Karowe’s large, high-value diamonds “that have historically accounted for about 60% to 70% of its annual revenues,” according to the report.
According to Lucara’s CEO Eira Thomas, “for the first time in our ten-year history, we have insight [into] what becomes of each and every +10.8-carat rough diamond produced from our mine, participating in each step of the planning and manufacturing process right through to the final polished sale. Not only has this approach stabilized prices for our most valuable production segment, [but it has also] demonstrably grown demand, a core objective.”
