Lucapa Diamond Company Limited (ASX: LOM) announced the inaugural competitive bid sale for the high-quality diamond produced from Lulo diamond mine. It marks the significant step in the Angolan diamond mining industry where this sale will demonstrate the first diamond offered in the competitive process under the new diamond marketing reforms enacted by the President of Angola and the Angolan Council of Ministers.
As per the media release dated 14 January 2019, Lucapa will close the historic Lulo competitive bid sale on the date scheduled to 31 January 2019. The bid sale is reportedly organized in the Angolan capital of Luanda by the state-owned company, SODIAM, responsible for the trading of diamonds in Angola.
The inaugural ceremony will uncover seven rare Lulo diamonds that will reflect some of the high-quality production of Angola. It will include the bidding for a 46 carat pink and six top-color gems ranging from 114 carats to 43 carats.
Lucapa Diamond Chief Executive Officer Stephen Wetherall bestowed its gratitude for the positive marketing reforms and said the competitive event scheduled to be held on 31 January 2019 would outline a substantial milestone for both the Lulo mine and an overall Angola’s diamond mining sector.
The new diamond marketing policies have gained traction from some of the world’s leading stone manufacturers and diamantaires which are expected to take active participation in the inaugural event. The reforms introduced by President Lourenco’s Government defines one of the measures that the Angolan Government have been seeking to increase foreign direct investment into Angola’s diamond sector.
Lucapa further told that diamonds would be offered for sale by Sociedade Mineira Do Lulo (SML) which is a joint venture between ASX-listed Lulo mine operator Lucapa Diamond Company Limited, Angolan diamond mining company, Empresa Nacional de Diamantes E.P. (“Endiama”) and local partner, Rosas & Petalas. SML holds the alluvial mining license to the prolific Lulo concession in Angola’s diamond-rich Lunda Norte region.
ENDIAMA’S Strategic Planning and Mining Operations Executive, Laureano Receado Paulo stated that “this tender would allow the transparency in diamonds trading which is most essential to acquire attractive interest of investors in the diamond sub-sector. In this way, Angola's diamonds will be sold at fair prices, more valued and deliver maximizing revenues.
Eugénio Bravo da Rosa, Chairman of the Board of Directors of SODIAM also presented the same views and said this event in the national diamond sub-sector, with local business owners, foreign direct investors and all the agents within the international diamond industry, reinforces a commitment to transparency.
This first tender organized by SODIAM in Angola is said to mark a turning point in the trading of diamonds in Angola, reflecting greater flexibility and transparency in this sensitive and vital industry for Angolan economy.
However, Lucapa closed the trading session at lower ends today. The stock price fell by 2.5% to last trade at $0.195 on 14 January 2019. Over the past 12 months, LOM has witnessed a negative performance change of 21.57% including a plunge of 11.11% in the last three months.
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