Amid uncertain times for the diamond industry, Canada’s Lucara Diamond Corp has managed to seal a supply agreement with a group in Antwerp, Belgium, that will secure regular cash flow, using a unique pricing mechanism.
Under the agreement, the company will sell all the 10.8-plus-carat diamonds from the Karowe mine, in Botswana, to HB Group until the end of the year.
Lucara explains that the purchase price will be based on the estimated polished outcome, determined through state-of-the art scanning and polishing technology, with a true up paid on actual achieved polished sales thereafter, less a fee and the cost of manufacturing.