Lucapa Diamond Company has taken on a majority stake in the Lulo mine in Angola, enabling it to receive increased returns from future projects at the site.
The miner upped its share to 51% from the previous 39% stake, following a three-day meeting with interested parties. These included the Angolan government, as well as joint-venture partners Rosas and Petalas, which held 10%, and state-owned diamond-trading company Endiama, which previously owned 51%, it said Thursday.
Lucapa first began production at Lulo in 2015 and has since been trying to find the diamond “mother lode,” or what it believes to be the source of its alluvial diamonds. Holding the majority stake in Lulo will allow Lucapa to increase its revenue share in potential upcoming projects.
“Securing a majority stake of the Lulo exploration is a pivotal outcome for Lucapa because it will deliver us an increased share of any exploration success,” said Lucapa managing director Alex Kidman.
Lulo contains a significant proportion of large, high-value diamonds, which enabled Lucapa to narrow its loss for 2024 to $1.5 million from $17.2 million the year before, despite weak diamond prices.
Lulo is now Lucapa’s main deposit, following its sale of the Mothae mine in Lesotho last year. It also owns the Merlin mine in Australia, for which it is seeking partners to help fund its $16 million production plan.
Image: The Lulo mine in Angola. (Lucapa Diamond Company)
