Lucapa Angola Tender Rakes In $17M

RAPAPORT… Lucapa Diamond Company sold $16.7 million worth of rough
stones from its Lulo mine at the first diamond tender under Angola’s new
sales rules.




“The exceptional sale prices achieved for the Lulo diamonds
reflected the highly competitive bidding from leading international
diamantaires and large-stone manufacturers from eight countries that
participated in the tender,” the company said Friday.



The miner sold seven special-size stones through
an electronic tender in Luanda organized by state-owned diamond-marketing
company Sodiam. Six white stones weighing 114.94, 85.24, 75.62, 70.08, 62.05
and 43.25 carats, and a 46.77-carat pink, fetched a combined average price of
$33,530 per carat at the sale, which took place January 30 to 31. Lucapa has been withholding
the stones from sale throughout the year to sell them under the reformed
rules, which were designed to improve transparency and pricing.



Under the previous regulations, miners were required to sell
their diamonds to a list of buyers Sodiam selected, limiting competition for the
stones and causing pricing to fall below market levels. The new system allows
companies to offer 60% of their production to clients of their choice.



Lucapa has now sold $141
million worth of rough Lulo diamonds since it began commercial operations in
2015, at an average price of $2,105 per carat.



The company’s share
price rose 8% Friday following the announcement.



Image: The 114.94-carat (right) and 85.24-carat (left) stones from Lulo. (Lucapa Diamond Company)