Wednesday 13th December 2017

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Lucara Diamond scoops up $53 million for world’s largest uncut rough

by Greg Klein | September 25, 2017

The second-largest gem-quality diamond ever found now advances to “its next stage of evolution,” as Graff Diamonds takes on the 1,109-carat Lesedi La Rona. A company that modestly credits itself with fashioning “the most fabulous jewels in the world” plunked down $53 million for the product of Lucara Diamond’s (TSX:LUC) Karowe mine in Botswana, an ongoing source of record-sized rocks.

Lucara Diamond scoops up $53 million for world’s largest uncut rough

The Lesedi La Rona “will dictate how it
wants to be cut,” said buyer Laurence Graff.
(Photo: Donald Bowers/Getty Images for Sotheby’s)

Curiously, Lucara president/CEO William Lamb called the price “an improvement on the highest bid received at the Sotheby’s auction in June 2016.” That was when his company rejected a reported $61-million bid, hoping to haul in $70 million or more. Presumably the discrepancy results from what would have been the gavel-swinger’s piece of the action. As is usually the case for rough sales, the Graff transaction took place sans auction. By press time Lamb hadn’t responded to a ResourceClips.com inquiry.

Graff had previously paid the miner $17.5 million for a 373.72-carat shard that broke off Lesedi during the recovery process. With improved technology, Lucara and other companies hope to avoid such damage, making super-sized stones less uncommon.

The Lesedi sale amounts to $47,777 per carat, but falls short of a record for rough. In May 2016 Lucara got $63.11 million, or $77,649 per carat, for the 812.77-carat Constellation, another Karowe monster.

“The stone will tell us its story,” Laurence Graff said of his latest purchase. “It will dictate how it wants to be cut and we will take the utmost care to respect its exceptional properties.”

They’ll have to. Given the unique qualities of each stone, cutting and polishing can present heart-stopping challenges. But, since the time South Africa’s 3,106.75-carat Cullinan diamond was subdivided into nine components of Britain’s Crown Jewels, technology has improved the ability to both understand a rock’s properties and reshape it into brilliant bling.

But “why would you want to polish it?” Lamb reportedly had asked previously. According to a July 2017 Reuters story, he argued, “The stone in the rough form contains untold potential…. As soon as you polish it into one solution, everything else is gone.”

Lesedi has not only raised Karowe’s profile but influenced proposed legislation that would allow Botswana to purchase exceptionally large or unusual diamonds from its mines. Earlier this month Lucara stated its support for the plan, emphasizing that prices would reflect market values.

Read about the recently published Koh-i-Noor: The History of the World’s Most Infamous Diamond.

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