Lucapa Diamond Company Limited says it fears that its production at Lulo Mine in Angola could be adversely impacted by the ongoing blockade of it’s entrance by community leaders.
The company said in a statement that it was facing disruptions with some of its staff who stay outside the mining camp being blocked from accessing the mine by community leaders.
“The blockade is currently peaceful; however, it is preventing mine workers from entering or exiting the site,” said managing director and CEO Alex Kidman in a statement.
“Lucapa’s priority remains with the ongoing safety and wellbeing of its employees. Processing of stockpiled ore to recover diamonds is continuing, though there has been some downtime at the processing plant because workers who live outside the mine gates have been unable to enter.”
The blockade has interrupted alluvial mining and kimberlite bulk sampling activities at Lulo, said Kidman.
He said there was “a risk the blockade could impact Lulo’s Q1 2025 production results if it is not resolved soon as stockpiled gravel is being depleted” adding that the community leaders’ demand were “unreasonable”. He however, did not say what the demands were.
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“The community leaders have made a series of unreasonable demands from Sociedade Mineira Do Lulo (“SML”), the operating entity of the Lulo Mine. SML believes the matters being pursued by the group are the responsibility of the local authorities to provide.
“Lucapa has consistently supported the local community and adhered to its social responsibilities, but the Company believes these new demands are unreasonable and unexpected.”
Kidman said discussions were underway between the community leaders and a government delegation including representatives of the Regional Governor to peacefully end the blockade although “no progress has currently been made”.
“The Company will provide further updates on the situation as appropriate. This announcement is authorised for release by the Board of Lucapa Diamond Company Limited,” said Kidman.
Lucapa Diamond Company Limited is an ASX-listed diamond miner and explorer with assets in Angola and Australia. The company holds interests in the Lulo Diamond Mine, which produces high-value alluvial diamonds, and the Lulo Kimberlite Exploration Joint-Venture in Angola. Lucapa acquired the Merlin Diamond Project in Australia in 2021, enhancing its portfolio.