Lucara Diamond, HB Antwerp revive sales agreement

Canada’s Lucara Diamond has reestablished a gem sales agreement with Belgian HB Antwerp five months after cutting connections with them, Reuters reported citing the company’s statement.

In September of last year, Lucara announced the end of its partnership with HB Antwerp, citing “a material breach of financial commitments.”

For ten years starting in December of last year, HB Antwerp will receive rough diamonds weighing at least 10.8 carats from Canadian miner Lucara, according to the Canadian company’s statement.

At the time, HB Antwerp declined to comment on the situation.

Moreover, the acquisition of 24 per cent of HB Antwerp by Lucara has been reevaluated in Botswana, the country where Lucara mines diamonds at its Karowe project.

The first diamond sales contract between the two businesses was signed in 2020 and renewed for an additional 10 years in 2022.

In its revised agreement, Lucara stated that the purchase price for rough stones would be determined by mutual agreement on the estimated value of polished diamonds, with an additional payment contingent upon actual polished sales achieved.

According to Lucara, the pricing mechanism is anticipated to produce consistent cash flow.

“This partnership reflects our commitment to ensuring stability and sustainability in our operations,” Lucara Chief Executive William Lamb stated.