Botswana reassessing HB Antwerp deal after Lucara Diamond cuts ties (updated)

Lucara Diamond

28/09/2023 16:08

(Recasts with Botswana president on HB deal)
    By Brian Benza
       GABORONE, Sept 28 (Reuters) - Botswana's government is
reassessing a proposed deal with HB Antwerp after Lucara Diamond
 LUC.TO  terminated its sales agreement with the Belgian gem
trader, citing financial irregularities, President Mokgweetsi
Masisi said on Thursday.
    Lucara Diamond said on Thursday it had ended its agreement
with HB Trading BV, a unit of HB Antwerp, following what it
called "a material breach of financial commitments by HB". HB
did not immediately respond to requests for comment.
    In March Botswana, the world's No. 1 diamond producer by
value, announced a deal to buy a 24% stake in HB Antwerp and to
supply it with an undisclosed quantity of rough diamonds for
five years via the state-owned Okavango Diamond Company. 
    Speaking at a press briefing after Lucara terminated its
deal with HB, Masisi said Botswana only had "an agreement in
principle" with the Belgian firm and had not signed a deal.
Botswana was now assessing the situation, he said.
    "We have now learnt that the deal between Lucara and HB is
off due to financial issues as it has been reported. It is for
us now to determine the course of action we are going to take,"
Masisi said.
    Diamond processor and trader HB Antwerp earlier this month
removed one of its three co-founders, Oded Mansori, from
management following differences over strategy.
    Mansori, who co-founded HB Antwerp in 2020 with partners
Shai de Toledo and Rafael Papismedov, said he was taking them to
court over his removal.    
    HB and Lucara first entered into a diamond sales agreement
in 2020, which was extended for 10 years in 2022. Lucara said it
would continue to sell its stones through its Clara diamond
platform, traditional tenders and other routes.

 (Reporting by Brian Benza; Writing by Nelson Banya; Editing by
Mark Potter and Jan Harvey)
 ((Nelson.Banya@thomsonreuters.com;))