Miner Lucapa Diamond Enters Administration

Lucapa Diamond, the Australian company that owns the Lulo mine in Angola and the Merlin mine in Western Australia, has gone into voluntary administration.

The move came a week after Lucapa halted trading of its shares on the Australian Securities Exchange.

KordaMentha Restructuring executives Richard Tucker and Paul Pracilio, who were appointed administrators for Lucapa, will undertake “an urgent assessment of the group and [its] operations and will shortly be commencing a dual-track recapitalization and sale process for the group,” the miner announced on May 23.

Tucker told the Australian Broadcasting Corporation that Lucapa’s assets still have “significant upside potential.”

Lulo has produced a number of big diamonds, including a 170 ct. pink in 2022 and a 404-carater in 2016.

Last May, Lucapa sold its 70% stake in Lesotho’s Mothae mine to a local company, Lephema Executive Transport.

Top: The Merlin mine in Western Australia (photo courtesy of Lucapa Diamond Company)