Lucapa to Up Stake in Angola’s Lulo Diamond Mine 

Lucapa Diamond Company is set to take on a majority stake in the Lulo mine at the beginning of 2025, providing it with increased exploration capability.  

The company is currently in talks with the Angolan government to up its stake from 39% to 51%, it said Monday. Lucapa, in partnership with the Angolan government, began production at the alluvial diamond mine in 2015.  

Lulo has a significant proportion of large, high-value diamonds, which boosted its latest third-quarter sales in which revenue was up 86% to $16.9 million.  

Earlier this year, the miner sold its 70% stake in the Mothae site in Lesotho to the local mining services company Lephema Executive Transport. The decision to offload the mine came as the company shifted focus to streamlining its portfolio and core assets.  

The miner is also looking for partners to help fund the $16 million production plan for its Merlin mine in Australia, a project that’s expected to turn out up to 314,000 carats over the next five years.  

The company “is on track to finalize the revised agreement in the new year,” said Lucapa CEO Alex Kidman. Increasing its share in Lulo to 51% will give Lucapa “significantly more exposure to exploration success,” he continued, adding that he was confident the deal would be signed in early 2025.

Image: Large special diamonds from the Lulo mine. (Lucapa Diamond Company)