The Canadian mining company Lucara Diamond has discovered the world's second-largest diamond, providing a rare glimmer of hope for the struggling diamond sector. The 2,492-carat diamond, found in Lucara's Karowe mine in Botswana, is the largest known gem of its kind since the Cullinan diamond, which was discovered over a century ago and incorporated into the British Crown Jewels.
William Lamb, CEO of Lucara, described the find as "a bright spot in a gloomy market" and promised to use the diamond to enhance the profile of the diamond sector and Botswana. In light of the challenges posed by the growing market for synthetic diamonds and the decline in luxury spending, this find is invaluable.
This is a once-in-centuries event and an absolute geological phenomenon," commented Clifford Elphick, a former De Beers manager and now the head of his own mining companies in South Africa. He emphasized that this is the most significant discovery of this century.
The site where the gemstone was found, the Karowe Mine, is already known for other large discoveries, including the 1,758-carat Sewelô and the 1,109-carat Lesedi La Rona. The new gem was discovered using X-ray technology that was installed eight years ago, after the discovery of the Lesedi La Rona, to avoid damage from the facility's mills.
Botswana's President Mokgweetsi Masisi was presented with the rare gemstone on Thursday. Diamonds are of crucial importance to the southern African country, accounting for about a quarter of its gross domestic product.
The stock of Lucara rose by about 40 percent following the news, while estimates suggest the diamond's value could be over 40 million USD. This could be a decisive gain for Lucara in an otherwise challenging market environment.
Diamonds are traditionally evaluated based on the so-called 4Cs: Color, Clarity, Cut, and Carat Weight. The size of the new discovery is so enormous that it cannot be analyzed with conventional equipment, and a careful marketing strategy is required to achieve its maximum value.
Lucara has already gained experience in the past with the sale of large gemstones. For example, the Lesedi La Rona was sold for 53 million US dollars, although the final value heavily depends on the color of the stone. Lamb indicated that potential buyers for the current find could be private collectors or luxury brands such as Louis Vuitton, Bulgari, Tiffany, Chopard, and AndreMessika.
A sale through the auction house Sotheby's is ruled out, said Lamb. However, it is crucial to market the stone carefully to maximize its value, emphasized analyst Raj Ray from BMO Bank.
The diamond sector remains challenging, but for Lucara this is a very positive result," summarized Ray.
