Africa Mining: Lucara agree with Botswana govt on option to buy unusually large diamonds

Lucara Diamond Corp (CN: LUC)

Lucara Diamond Corp (CN: LUC) agrees with Botswana’s plans to gain the first option to buy diamonds that are unusually large or have unusual features, at market prices.

It made the statement in response to a Reuters article earlier this week that outlined the proposed amendment to the country’s Precious and Semi-Precious Stones (Protection) Act, which could affect discoveries like the tennis-ball-sized diamond found at Lucara’s mine in 2015.

“A proposed amendment … will have no impact on Lucara Diamond Corp’s financial position,” the company said.

The bill stated that the price to be paid by the government for a rough or uncut precious stone offered for sale by the producer must be agreed by the parties, in line with the current market price, Lucara noted.

“Lucara is in agreement with this policy as a way for both the government and the company to achieve sustainable revenue at market prices for the sale of its diamonds,” the company said.

The mining sector is the largest component of Botswana’s economy and diamonds are the cornerstone of the country’s success, along with a rigid adherence to prudent use of revenues.

Lucara recovered the 1,111-carat Lesedi La Rona diamond from its Karowe mine in 2015. It is thought to be worth some US$75-80 million.

The Mining Journal World Risk Report (feat. MineHutte ratings) will be published later this month and will include risk ratings across 85 jurisdictions.

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