DiamondBuzz
Lucapa Secures Majority Stake in Angola’s Lulo Mine
Lucapa Diamond Company, an Australian Securities Exchange (ASX)-listed diamond miner, has finalized its mineral investment contract (MIC) for the Lulo joint venture (JV) in Angola, increasing its stake in the project to 51%. The contract is now awaiting formal signature by the Angolan Ministry of Mineral Resources and Petroleum.
The Lulo JV, which focuses on exploring kimberlites at the Lulo concession, has seen Lucapa raise its ownership from 39% to a majority share. The contract finalization followed a three-day meeting in Angola, where Lucapa, along with JV partners Endiama, Rosas & Petalas, agreed on the remaining details.
Lucapa’s Managing Director and CEO, Alex Kidman, commented on the development, stating: “Securing a majority stake in the Lulo exploration JV is a critical milestone for Lucapa, as it will provide us with an increased share of any exploration success. The finalization of the MIC is something our shareholders have long awaited. This progress highlights Angola’s commitment to Lucapa and to the Lulo project, one of the most prominent diamond ventures in the country. We’re excited to continue working with our partners to uncover the source of Lulo’s extraordinary diamonds.”
Currently, the kimberlite bulk sampling program is underway at the Lulo concession, with stockpiling of samples from L130/01. Additional samples are being prepared from promising sites, including L349, L137, and L130.
Earlier in May 2024, Lucapa Diamond announced plans to divest a 70% interest in its Mothae diamond mine in Lesotho.
DiamondBuzz
Lesotho’s Kao Diamond Mine To Halt Operations Amid Industry Slump
The Mine’s Operator, Storm Mountain, Cited A Severe Financial Crisis Driven By A Prolonged Drop In Global Rough-diamond Prices, Rising Middle East Conflict
Lesotho’s largest diamond mine, Kao, will cease operations on June 30 and transition to care and maintenance. The mine’s operator, Storm Mountain, cited a severe financial crisis driven by a prolonged drop in global rough-diamond prices, rising Middle East conflict-related fuel costs, and stiff competition from lab-grown diamonds.
Despite a warning last October that the mine required $13 million in fresh capital to survive, the necessary investment did not materialise. According to CEO Neo Hoala, the steep market decline made continued operations unsustainable. The shutdown will impact roughly 750 workers.
The mine’s financial downturn is stark: in 2024, Storm Mountain sold 250,000 carats for $50 million—a massive drop from its $105 million revenue in 2022. Kao’s suspension reflects a broader crisis in the diamond sector, following recent insolvencies and closures at Canada’s Ekati mine and South Africa’s Ekapa and Finsch mines.
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