Lucapa to Sell Majority Stake in Mothae Diamond Mine

Lucapa Diamond Company is set to sell its 70% stake in the Mothae mine in Lesotho, known for producing some of the world's highest value diamonds
Lucapa to Sell Majority Stake in Mothae Diamond Mine

The Australian mining company is divesting to concentrate on its core assets in Africa and Australia.

Since commencing commercial production in 2019, Lucapa has recovered over 150,000 carats from Mothae, generating more than $100 million in revenue. The Mothae mine is renowned for its large, high-value diamonds, achieving the second-highest dollar per carat prices globally for kimberlite diamonds.

Lucapa's board announced on May 15 that it is "considering all options" for the divestment of its Mothae stake and is in discussions with the Lesotho government, which holds the remaining 30%.

"Upon review, it is clear the company should streamline the portfolio to focus on our core assets in Africa and Australia," said Lucapa Chairman Stuart Brown. He highlighted the rewarding collaboration with the Lesotho government and the successful optimization of the Mothae plant to recover large diamonds. Brown anticipates significant interest in the stake from the diamond industry and beyond.

As of December 2023, Mothae's resources are estimated at 180,000 carats indicated and 960,000 carats inferred, with a modeled per carat value of $606. The mine has produced 13 diamonds over 100 carats, including a 213-carat Type IIa gem, and 10 diamonds valued at over $1 million each. Mothae also has a value-adding cutting and polishing offtake partnership with Safdico, a manufacturing and trading company.

Lucapa retains a 40% stake in the Lulo alluvial mine in Angola and is involved in exploration projects in Angola, Australia, and Botswana.

Diamond World