Lucapa to Sell Large Stones After Angola Reforms

RAPAPORT... Lucapa Diamond Company will sell six large stones weighing atotal of 449 carats from its Lulo mine in Angola after an overhaul of thenation's mining laws prompted it to delay the sale, it said. The Angolan government introduced reforms to its diamondsector in the first half of the year to help boost foreign investment. Thosemeasures included a new marketing policy for Angolan diamonds, and the option of offering goodsfor sale in locations such as Antwerp. Anticipating the changes, Lucapa has been holding back aselection of large stones from previous sales, and will now sell them under thenew policy, it explained Friday. These include six type IIa white diamondsweighing 114 carats, 85 carats, 75 carats, 70 carats, 62 carats and 43 carats,as well as a 46-carat pink diamond. "The discussions with our Angolan partners regarding thepolicy changes taking place in the Angolan diamond sector have reached a stagewhere we are now able to plan for the sale of these large, premium-value Lulodiamonds held over from previous sales," Lucapa managing director StephenWetherall said. "We look forward to marketing these exceptional diamonds assoon as the necessary arrangements are put in place to continue showcasingAngolan diamonds to the world." The decision to delay the tender for those stones had a negative impact onLucapa's first-half results, the company added. Its losses grew to $4.6 million for theperiod, versus a loss of $1.2 million a year earlier. Even so, Lucapa's sales rose 3% year on year to $15.9million in the first half, while production for the same period climbed 15% to9,566 carats. The average price of rough diamonds from Lulo rose 1% to $1,642 per carat. Rough-diamond inventory from the asset grew61% year on year to 2,755 carats as of June 30, the miner reported. Lucapa's most recent sale of 2,531 carats of rough from Lulofetched $2.5 million, achieving an average price of $985 per carat, the companynoted. Image: 46-carat pink Lulo diamond. Credit: Lucapa.