Dramatic Turnaround: Gaston International Acquires Lucapa Diamond Company
In an exciting development for the diamond mining industry, Gaston International, a mining investment firm based in the dazzling city of Dubai, has successfully acquired Lucapa Diamond Company for approximately $10 million. This notable acquisition includes Lucapa’s crown jewel, the Lulo diamond mine, which is celebrated for its remarkable yield of high-quality diamonds.
A Shifting Landscape for Lucapa
Lucapa Diamond Company, previously listed on the ASX and known for its operations in Angola and Australia, faced significant challenges and went into involuntary administration in May 2023. During this tumultuous period, Richard Tucker and Paul Pracilio of KordaMentha Restructuring were appointed as administrators, overseeing a comprehensive evaluation of the company’s assets and facilitating the sale process that has led to this transformative deal.
The Lulo Diamond Mine: A Treasure Trove
Lucapa holds a 40 percent stake in the Lulo alluvial diamond mine, which has garnered a reputation as the world’s highest dollar-per-carat diamond mine, fetching an impressive $2,806 per carat in 2021. This mine has proven to be a significant source of remarkable diamonds, yielding 48 Type IIa diamonds weighing over 100 carats since mining commenced in early 2015. Noteworthy finds include the awe-inspiring 404-carat “4 de Fevereiro,” Angola’s largest diamond, and the stunning 170-carat pink diamond known as the “Lulo Rose,” recovered just last year in 2022.
Future Prospects at Lulo
According to Gaston’s outlined plans, Lulo holds a treasure chest of approximately 249,000 carats of diamonds yet to be extracted. The mine benefits from advanced technology, equipped with two processing plants that can handle around 600,000 cubic meters of gravel annually, ensuring the effective recovery of large diamonds. Furthermore, Lucapa’s 39 percent stake in the Lulo Kimberlite Exploration Project adds a layer of promise, as geological surveys have confirmed the presence of over 100 kimberlites in the area, significantly increasing the prospects for future exploration.
Expanding Horizons in Australia
In addition to the assets in Angola, Gaston will also acquire Lucapa’s Australian interests, which include the Merlin diamond mine located in the Northern Territory and the Brooking Diamond Project in Western Australia. The Merlin mine previously produced Australia’s largest diamond, with a staggering 75 percent of historical yields comprising gem-quality stones, including an array of vibrant colors from yellow to blue.
Strategic Vision Under New Leadership
At the helm of Gaston is Dev Shetty, a veteran in the colored gemstone mining sector, who has previously held significant positions at Gemfields and Fura Gems. Since founding the Jemora Group in 2024, Shetty has focused on solidifying the UAE’s position as a vital hub for mining investment. The company aims to leverage its acquisition of Lucapa to increase production at the Lulo mine, accelerate kimberlite exploration efforts in Angola, and strategically review the operations at the Merlin Mine in Australia.
Anticipated Impact on the Global Diamond Market
Shetty described the acquisition as a turning point for the corporation, which aspires to unlock growth potential and create lasting value in the diamond industry. This acquisition not only underscores the UAE’s growing influence within global commodity markets but also aligns with the recent Luanda Accord, an agreement that seeks to promote the diamond industry’s sustainable development by investing in diamond-producing countries.
DMCC’s Role in Elevating Dubai’s Profile
Ahmed Bin Sulayem, the executive chairman and CEO of the Dubai Multi Commodities Centre (DMCC), praised the acquisition as a strategic win for both Gaston and the broader diamond trade operating in Dubai. The DMCC continues its mission to attract and support top-tier enterprises, highlighting the UAE’s strategic advantages in fostering successful commodity markets.
This acquisition positions Gaston International not just as a player but as a contender on the world stage of the diamond mining industry, with plans to continue expanding its portfolio with an eye on sustainable mining solutions. As the pieces come together, stakeholders across the mining and investment sectors will undoubtedly watch with keen interest.
