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A tiny Australian miner just found this huge diamond

The 404.2 carat Type IIa D-colour Lulo gem

An Australian mining company has just announced the discovery of an enormous 400-carat diamond, and its shares are going wild.

The find – the biggest diamond ever unearthed in Angola – was announced by the Perth-based Lucapa Diamond Company. A short time ago, the company’s shares were up 32% to $0.425.

The gem is 404.2 carats, or about 80 grams, in weight and is the fourth 100+ carat diamond recovered from the Lulo diamond project in Angola’s Lunda Norte province.

The diamond is the 27th biggest recorded in the world and the biggest discovered by an Australian company.

The previous record for Angola’s largest diamond belonged to the Angolan Star, a 217.4 carat gem recovered in 2007.

Based on recent average prices, the latest diamond is worth more than $800,000 just on its weight alone. Cut and mounted into a piece of jewellery, the price would run into many millions.

The alluvial Mining Block 8 at Lulo, which has already produced more than 60 large special diamonds since mining started there in August 2015. The previous largest diamond recovered at Lulo weighed 133.4 carats.

Over the 12 months since the company started operations at Lulo, 10,372 carats have been recovered, not including the latest find. In the December quarter, the company recorded diamond revenues of $8.1 million at record quarterly average selling prices of $2141 per carat.

CEO Stephen Wetherall says Lucapa and its partners Endiama and Rosas & Pétalas are extremely proud to have recovered such an exceptional world-class diamond.

“We have always emphasised the very special nature of the Lulo diamond field and this recovery — together with the other 100 carat-plus diamonds recovered this year alone — is further evidence of that,” he says.

“And while we continue mining these exceptional alluvial gems from Mining Blocks 6 and 8 at Lulo, we are also continuing to advance our systematic exploration program to find the kimberlite source of these diamonds.”

Kimberlite is a type of rock desposit where diamonds form.

The company is essentially finding diamonds as it digs trenches in search of the core of the diamond source, the kimberlite pipe.

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