Australian mining company Lucapa Diamond announced Monday, December 23, that it will soon increase its stake in the Lulo Kimberlite Exploration Joint-Venture. The move, revealed by CEO Alex Kidman, will raise Lucapa’s ownership from 39% to 51%, making it the majority shareholder starting next year.
The shift in ownership will trigger a redistribution of stakes within the venture. Angola’s state-owned Endiama, which currently holds the majority share at 51%, will see its ownership drop. Meanwhile, Rosas & Petalas, which owns a 10% stake, faces an uncertain future in the project.
The Lulo Kimberlite project is located near the Lulo alluvial mine, which Lucapa already operates. Gaining a controlling stake in the project is seen as a strategic move by Lucapa to expand its diamond exploration efforts. By increasing its influence over operations, the company hopes to discover new kimberlite deposits, secure a long-term diamond supply, and reduce reliance on the more unpredictable alluvial resources. 
The company’s ambitions come at a pivotal time for the diamond industry. Rising competition from synthetic diamonds and persistently weak prices for natural diamonds have pressured companies to adapt. Lucapa’s expansion in Angola underscores its efforts to maintain its competitiveness in an evolving market.
“This is a key step in our long-term strategy to strengthen our position in diamond exploration,” Kidman said in a statement.
The announcement is likely to have ripple effects on Angola’s diamond sector, a cornerstone of the country’s economy. Lucapa’s increased stake also signals its confidence in the region’s untapped resources, which could reshape the landscape of Angola’s diamond industry.
Lucapa will hold a shareholder meeting on January 22, 2025, to finalize the approval of recent share issues and authorize new placements. Investors are encouraged to participate, as the outcomes could affect both their holdings and the company’s market position. For greater accessibility, the meeting will be broadcast live.
