Dubai’s Jemora Group Acquires Lucapa Diamond Miner for $10 Million

In a significant move within the diamond industry, Dubai’s Jemora Group. Through its mining investment subsidiary Gaston International, has acquired struggling diamond miner Lucapa Diamond Company Ltd. for approximately $10 million. This deal marks a pivotal step for Gaston. Which has set its sights on becoming a key player in the global diamond mining sector.

Founded by seasoned mining executive Dev Shetty. Gaston now takes ownership of Lucapa’s assets, including its prized Lulo mine in Angola. One of the world’s highest-value-per-carat diamond mines. Lucapa, which had been facing financial challenges. Was placed under involuntary administration in May 2023. Administrators Richard Tucker and Paul Pracilio of KordaMentha were. Tasked with overseeing the sale process.

A Diamond Powerhouse Dubai’s Jemora Group

The Lulo mine, in which Lucapa holds a 40% stake, is famous for its extraordinary diamond production. Located in Angola, Lulo is known for its high dollar-per-carat yields. Having fetched a remarkable $2,806 per carat in 2021. Since its operations began in 2015. Lulo has produced numerous high-quality diamonds. Including Angola’s largest recorded diamond. The 404 carat “4 de Fevereiro,” and the stunning 170-carat pink diamond known as the “Lulo Rose.”

The mine is estimated to still hold 249,000 carats of diamonds. And its advanced technology and dual processing plants can handle 600,000 cubic meters of gravel annually. Making it a prime asset for Gaston’s expansion plans.

Further Potential at Lulo

Gaston also gains a 39% stake in the Lulo Kimberlite Exploration Project. A promising initiative that aims to uncover the primary kimberlite source of the large. Type IIa diamonds found in the area. Gaston sees great potential in this project, with over 100 kimberlites already confirmed, some of which have yielded Type IIa diamonds.

Expanding Across Continents

The acquisition not only includes the Lulo mine but also extends to Lucapa’s Australian operations. Gaston now owns the Merlin diamond mine, renowned for producing Australia’s largest diamond, along with the Brooking Diamond Project in Western Australia. The Merlin mine has historically yielded a significant number of high-quality gemstones, including rare yellow, pink, and blue diamonds.

A Strategic Move for Gaston and Dubai’s Jemora Diamond Industry

Dev Shetty, who previously held senior roles at Gemfields and Fura Gems, expressed excitement about the acquisition, calling it a defining moment for Gaston. “We are focused on increasing production at the Lulo mine, accelerating exploration in Angola, and refining our strategy for the Merlin Mine,” Shetty said. “Our goal is to create sustainable value, expand our mining portfolio, and strengthen our leadership in the diamond industry.”

Ahmed Bin Sulayem, Executive Chairman and CEO of the Dubai Multi Commodities Centre (DMCC), also highlighted the strategic importance of this acquisition. He praised the Lulo mine as a “global asset” and emphasized that the acquisition reinforces Dubai’s position as a leading hub for the diamond trade.

A Bright Future for Gaston and the UAE’s Mining Sector

The deal marks the beginning of a broader strategy to position the UAE as a key center for mining investments. Gaston has already signed a deal to acquire the Chacarilla Copper Mine in Bolivia, underscoring its ambitions for diversification and growth in the mining sector. With the backing of Dubai’s thriving commodities market, Gaston is poised for success as it expands its global footprint.

In the coming months, Gaston will work closely with Lucapa’s management and partners to unlock the full potential of its newly acquired assets. The company’s vision includes focusing on energy transition, precious metals, and gemstones, ensuring sustainable growth and value creation for all stakeholders.

This acquisition serves as a testament to Dubai’s robust business environment and strategic positioning in the global commodities market, offering unmatched opportunities for companies like Gaston to thrive.