HB Antwerp and Lucara Sign a Long-Term Supply Agreement

HB Antwerp will purchase all of Lucara Diamond’s +10.8 carat rough diamonds from the Karowe mine in Botswana for a period of 24 months 



HB Antwerp and Lucara Diamond Corp surprised the diamond world in 2020 when they entered into a unique supply agreement. This agreement saw HB Antwerp formally commit to purchasing all of Lucara Diamond’s +10.8 carat rough diamonds from the Karowe mine in Botswana.  Today, both parties are pleased to announce a new long-term partnership agreement. For a minimum period of 24 months, HB Antwerp will purchase all of Lucara Diamond’s +10.8 carat rough diamonds from the Karowe mine in Botswana. These large high value diamonds from Karowe, account for approximately 70 percent of Lucara Diamond’s annual revenues.  Under the terms of this supply agreement, the purchase price paid for each 10.8 carat rough diamond is based on the estimated polished outcome, determined through state-of-the-art scanning and planning technology, with a true up paid on actual achieved polished sales thereafter, less a fee and the cost of manufacturing.  

Oded Mansori, CEO HB Antwerp: «More than a supply agreement, this deal structurally embeds a more transparent and sustainable way of working in the diamond value chain. For the first time, different partners of the supply chain are fully aligned, sharing complete data and information and this throughout the process from mine to consumer. We are truly proud with this innovative and straightforward collaboration that has proven itself through the volatile and uncertain reality of 2020. We are confident to achieve even better results during the term of this new contract and demonstrate the power of a true partnership.» 

Eira Thomas, CEO at Lucara Diamond, commented: «The decision to sell our +10.8 carat rough diamonds under a committed supply agreement with HB beginning in July of 2020 has helped support prices for this critical segment of our production amidst pricing uncertainty caused by the ongoing global pandemic. Not only have rough diamond prices experienced a positive re-bound over the past two quarters, Lucara is also beginning to see the benefits of this strategy in accessing a broader marketplace. With this agreement we are creating better alignment between all participants and establish a healthier, more efficient global diamond supply chain.»

Share this article:

Subscribe to our Newsletter

Your browser is out of date!

Update your browser to view this website correctly. Update my browser now

×