- Lucara and HB renew unique supply agreement for large rough diamonds after 24 months of successful partnership
- Transforms pricing model and aligns interests across the value chain
Vancouver, Canada & Antwerp, Belgium – 16 November 2022
Lucara Diamond Corp. and HB Antwerp announced that after 24 months of successful partnership, they have renewed their exclusive supply agreement, whereby HB Antwerp will purchase the coming 10-year supply of +10.8 carat rough diamonds sourced from the Karowe mine in Botswana, which is owned and operated by Lucara.
The renewed partnership will provide HB Antwerp with long-term access to large, exceptional quality Type IIa diamonds from one of the world’s leading independent producers, placing Lucara and HB at the forefront of shaping the diamond market’s future trajectory.
Following an initial six-month period of cooperation in 2020, Lucara extended its agreement to cover a period of 24 months, to conclude on December 31, 2022. The renewed agreement extends the partnership for ten years, until December 31, 2032.
Under the exclusive agreement, all +10.8 carat diamonds from the Karowe mine, which have historically accounted for approximately 60-70% of Lucara’s annual revenues, are sold to HB Antwerp at prices based on the estimated polished outcome of each diamond.
The projected polished price is determined using state-of-the-art scanning and planning technology and is then adjusted through top-up payments based on actual polished sales, less a fee, and the cost of manufacturing.
“The Lucara – HB agreement reflects the renewed commitment of both companies to embrace a new approach to sourcing, transforming, and distributing mineral resources – based on equity, transparency, and sustainability, providing meaningful benefits to all participants, including the people and communities of Botswana.”
Eira Thomas, CEO commented, “It has been more than two years since Lucara initiated this transformational approach to sales of its’ highest value diamonds, working in collaboration with HB to create alignment along the value chain, differentiating diamonds from Karowe on the basis of provenance, excellence in manufacturing and a commitment to complete transparency for all stakeholders.
“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.”
About Lucara Diamond Corp.
Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned Karowe Mine in Botswana and owns a 100% interest in Clara Diamond Solutions, a secure, digital sales platform positioned to modernize the existing diamond supply chain and ensure diamond provenance from mine to finger. The Company has an experienced board and management team with extensive diamond development and operations expertise. The Company operates transparently and in accordance with international best practices in the areas of sustainability, health and safety, environment, and community relations.
About HB Antwerp
Founded in 2020, HB is pioneering a mineral infrastructure that redefines the way minerals are sourced, transformed, and distributed. HB’s closed-loop ecosystem introduces a comprehensive digital trail across the complete value chain, from raw minerals to finished results, ensuring verifiable and immutable data
