First seen in 2020, the collaboration sees HB Antwerp purchasing the entirety of Lucara’s +10.8 carat rough diamonds from the Karowe mine in Botswana.
The high value diamonds account for 70% of Lucara’s annual income, and the price will be based on an estimated polished outcome.
Oded Mansori, CEO at HB Antwerp, said that the deal “structurally embeds a more transparent and sustainable way of working in the diamond value chain”.
He added: “For the first time, different partners of the supply chain are fully aligned, sharing complete data and information and this throughout the process from mine to consumer.
“We are confident to achieve even better results during the term of this new contract and demonstrate the power of a true partnership.”
Eira Thomas, CEO at Lucara, said that the agreement has supported the firm’s production “amidst pricing uncertainty” caused by Covid-19.
She added: “Not only have rough diamond prices experienced a positive rebound over the past two quarters, Lucara is also beginning to see the benefits of this strategy in accessing a broader marketplace.
“With this agreement we are creating better alignment between all participants and establish a healthier, more efficient global diamond supply chain.”