Lucapa Diamond to acquire majority stake in Lulo JV in Angola
Lucapa Diamond Company, listed on the Australian Securities Exchange (ASX), has secured a majority stake of 51% in the Lulo joint venture (JV) in Angola after finalizing its mineral investment contract (MIC). This marks an increase from its previous 39% shareholding.
The contract is now pending formal approval from the Angolan Ministry of Mineral Resources and Petroleum. The Lulo JV, which involves partners Endiama (the state-owned diamond company) and Rosas & Petalas, focuses on kimberlite exploration at the Lulo concession, a site known for producing some of the world’s highest-value diamonds.
Exploration goals
Lucapa’s managing director and CEO, Alex Kidman, highlighted the significance of this development, stating that holding a majority stake would provide the company with a greater share of any future exploration success. Kidman also noted that the progress with the MIC reflects Angola’s strong support for the Lulo project, which remains one of the country’s most prominent diamond ventures. The contract’s terms were settled after a three-day meeting in Angola, where the MIC Committee and JV partners agreed on the final details.
Lucapa is currently conducting a kimberlite bulk sampling program at Lulo, with samples already being collected from L130/01. Additional sampling is set to begin at other promising sites, including L349, L137, and L130. This exploration effort aims to identify the primary sources of Lulo’s high-quality diamonds.
In a separate strategic move, Lucapa announced in May 2024 that it would sell a 70% stake in the Mothae diamond mine in Lesotho. This decision reflects the company’s focus on maximizing returns from the Lulo project and enhancing its position in the global diamond market.
