Lucapa reopens Lulo mine

Lucapa Diamond Company Limited and its partners Empresa Nacional de Diamantes E.P. and Rosas & Petalas are pleased to announce the re-commencement of scaled mining operations at the Lulo alluvial diamond mine in Angola. As stated in the ASX Announcement of 1 April 2020, operations at Lulo were reduced to essential services only following the declaration of a State of Emergency in Angola in order to prevent the spread of COVID-19.

On 24 April 2020, a new Presidential Decree amended certain restrictions to allow essential industries to return 50% of their employees to the workplace. Lulo will resume mining and treatment operations on a 2 shift six-day week basis this week and will do so in compliance with advised health measures to ensure the safety of SML’s employees and contractors. Mining operations will be scaled to exceed 50% of nameplate capacity initially which will position the company to ramp up to full capacity once restrictions are lifted completely.

In addition, Lucapa and Mothae management continue to work with the Government of the Kingdom of Lesotho in respect of the care & maintenance program and also continue to review recommencement scenarios for the Mothae diamond mine.

In parallel to the re-commencement workstreams, Lucapa is exploring inventory financing solutions aimed at providing price protection in the current demand and price environment. The Company will provide further updates on these workstreams in due course.

Lucapa Managing Director Stephen Wetherall said, “it is pleasing to be able to report that after 4 weeks of reduced activities at the Lulo mine, production is re-commencing in a scaled manner whilst ensuring the safety of the employees and contractors.” “Lucapa and its partners continue to work with leaders in our industry on innovative solutions to ensure that our mines receive the best possible value for their special product”.