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Lucapa Eyes Increased Share in Lulo
Nov 28, 2019 7:04 AM
By Rapaport News
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RAPAPORT... Lucapa Diamond Corporation is in advanced discussions with
the Angolan government to secure a majority stake in its Lulo exploration project, it said
Thursday.
The company currently owns 39% of the 3,000-square-kilometer
project, which is based in the Lunda Norte region. State-owned
Endiama owns 51%, and private local company Rosas & Petalas holds a 10%
share. Lucapa hopes to reach
an agreement with the Angolan Ministry of Mineral Resources and Petroleum in
the first quarter of 2020.
Angola has recently relaxed its rules requiring government ownership of a majority stake in diamond projects, Lucapa
CEO Stephen Wetherall told Rapaport News Thursday. “This [is] due to the
new government wishing to attract significant foreign direct investment into
the mining sector,” he said.
Lulo regularly yields high-quality alluvial stones, with output at
the mine increasing 67% to 7,603 carats in the third quarter as the recovered
grade jumped 88%, the company reported last month. During the period, sales of
rough rose 49% to $6.7 million, and the average price climbed 28% to $1,143 per
carat. In 2016, Lucapa recovered a 404.2-carat diamond from Lulo, the largest rough in Angolan history.
Lucapa believes it is getting closer to pinpointing the kimberlite source of its rough diamonds at Lulo, predicting it will hit the “mother lode”
within the next two years, it noted in May.
The company’s stock rose 5% in early trading Thursday
following the announcement.
Image: Lulo mine. (Lucapa Diamond Company)
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Tags:
Angolan Ministry of Mineral Resources and Petroleum, ENDIAMA, lucapa, Lucapa Diamond Corporation, Lulo, Lulo mine, Rapaport News, Rosas & Petalas, Stephen Wetherall
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