The Vancouver mining company Lucara Diamond Corp. has joined their larger rivals De Beers and Russia’s Alrosa PJSC in exploring the blockchain tech.
According to Bloomberg, Lucara has purchased the operator of a digital rough-diamond selling platform, in addition to blockchain technology, in an effort to ensure quality and make the supply chain more transparent. Lucara, which currently operates one mine in Botswana famous for its big stones, last month acknowledged piloting a virtual ledger to reassure buyers that stones are genuine and aren’t funding armed conflicts.
They announced that they agreed to pay about $29 million in stock to buy Clara Diamond Solutions Corp. As well as blockchain, Clara has a platform allowing manufacturers to buy rough diamonds tailored for a specific polished outcome.
Clara is described as “a commercially scalable, digital platform” which allows rough diamond production to be matched with specific polished manufacturing demand, whilst the blockchain elements of the system will ensure “provenance tracking” across the entire supply chain.
“Lucara intends to commercialize the Clara platform in the coming months using a selection of the diamond production from the company’s Karowe diamond mine,” says in a statement.
Lucara Diamond replaces their CEO
Lucara also announced the departure of its current CEO, William Lamb, who will be stepping down from both the top job and its board, after being there for nearly a decade.
He will be replaced by Eira Thomas, a Lucara founder and current board director. She is probably best known for being one of the geologists who helped found the Diavik diamond mine in Canada’s Northwest Territories. She later became a director of the mine’s owner.
Chairman of Lucara Diamonds Lukas Lundin said that they “believe that Clara will not only modernise the entire diamond sales process but unlock additional value for all participants across the diamond market.”
In 2015, Karowe produced a 1,109 ct. diamond, considered the second largest rough ever found. Later that week, the mine coughed up an 813 ct. stone.
Lucara’s revenue and profit fell in 2017, largely due to a drop in sales of exceptional diamonds. Lucara’s share price has fallen 30% since December 30, 2016.
Stay with us and read some more news on Arcane Bear.