Lucapa Diamond Company Limited has restarted “scaled mining operations” at Lulo alluvial diamond mine in Angola, which is operated by the JV Sociedade Mineira Do Lulo (SML), of which Lucapa is part.

As announced earlier, on April 1, 2020, operations at Lulo were reduced to a minimum – with only essential services maintained following the declaration of a State of Emergency in Angola, as part of its war against COVID-19 and to prevent its spread.

“On 24 April 2020, a new Presidential Decree amended certain restrictions to allow essential industries to return 50% of their employees to the workplace,” Lucapa stated

As a result, Lulo will resume mining and treatment operations. Initially they will be carried out on a two-shift six-day week basis. Operations will be carried out 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,” Lucapa said.

Apart from Lulo in Angola, Lucapa said the Company and the management of the Mothae mine in Lesotho continue to work with the Government of the Kingdom of Lesotho “in respect of the care & maintenance programme and also continue to review recommencement scenarios for the Mothae diamond mine”.

Even as it puts in place re-commencement plans, Lucapa is also exploring “inventory financing solutions” aimed at providing “price protection” in the current demand and price environment.

Lucapa Managing Director Stephen Wetherall said, “it is pleasing to be able to report that after four 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.”

Pic Cap: Mining and preparation activities at Lulo