Could you introduce Lipari Mining?

Lipari is a Canadian-listed diamond company with operations in Brazil, through our Braúna mine, and in Angola, where we acquired the Tchitengo project. We are the largest diamond producer in Brazil, with 140,000 carats/y at a high value of US$185/carat, generating about US$25 million annually in cash flow. However, Braúna is nearing its end of life, and our future lies in Tchitengo, which offers a production profile 10 times higher, at 1.4 million carats/y from open-pit mining over a 14-year life of mine. And that’s only from one of the 30 kimberlite pipes on the property. This particular pipe, Tchiuzo, was discovered in 2006 by ALROSA and SM Catoca, who invested US$36 million to bring the project to feasibility stage in 2013. We are now completing work to allow us to update the feasibility study, aiming to enter production within the next three years. 

What drove you to acquire the Tchitengo project and expand to Angola and what are the next steps to production?

Brazil offers tremendous potential for diamond deposits, but there were no advanced projects available, so rather than spending another decade in exploration before generating cash flow, we shifted our focus to Angola and this near-production opportunity. We acquired Tchitengo through an open bidding process where our experience in bringing several mines into production worked to our advantage. Last year, we completed a drilling program confirming the resource at the Tchiuzo kimberlite pipe. The next step is a bulk sampling program to recover a diamond parcel to determine the current market value of our stones, after which we will complete an updated feasibility study and advance to production.

Could you elaborate on the upside potential of the remaining 29 kimberlites at Tchitengo?

In addition to Tchiuzo, we have another kimberlite in the north, Tchegi 38, which was previously drilled by BHP Billiton in 2011 and contains an inferred resource grading around 25 cpht. We will need to conduct a bulk sampling program to determine diamond value, but this pipe shows promising economic potential. For now, our priority is bringing Tchiuzo into production within three years, then moving on to Tchegi 38 and other prospects.

How are you finding the transition from Brazil to Angola?

Brazil and Angola share many historical similarities, speak the same language, and have the same legal system, including similar bureaucratic hurdles, for better or worse. One notable difference is the caliber of people at Endiama, the state-owned diamond company and our 25% equity partner at Tchitengo. These are mining professionals, engineers, geologists, metallurgists, many with private sector experience, which gives them an understanding of the industry. By contrast, in Brazil we often dealt with political appointees without mining backgrounds. Not having to explain the nuances of mining has been a major advantage. 

How has the market received Lipari since the listing, and how do you differentiate?

The market for diamond equities has been challenging, with publicly listed diamond companies struggling to raise capital for the past 10–15 years. We position ourselves as a green diamond producer. Our Braúna mine is the only diamond mine in the world that operates without a tailings pond, recycling 98% of its water and producing dry tailings that we sell or donate as a soil remineralizer to local farms. We aim to replicate the same process in Angola. Sustainability is increasingly important to high-end retailers and jewelers, many of whom now commit to sourcing only from companies working toward net-zero carbon footprints. Lipari meets that standard. As a public company, our chain of custody is audited by third parties and the government.

The diamond market is highly concentrated and prices have traditionally been more demand-driven. What factors are currently influencing natural diamond prices?

The supply side is highly concentrated, with only 22 diamond mines operating globally. Many of these are mature. Supply is further constrained by juniors’ inability to raise exploration funds for over a decade. As the supply curve continues to tighten, diamond prices should respond.

This year, diamond producers signed the Luanda Accord. Why is this significant?

In June, diamond-producing governments, major and mid-tier producers, and stakeholders across the value chain signed the Luanda Accord, committing to invest 1% of annual revenues in marketing natural diamonds. The funds will go to the Natural Diamond Council, which leads these efforts. Many of the claims used to market synthetics are misleading. For example, many are produced in China or India using coal-fired power, undermining their ESG claims. Meanwhile, natural diamond producers, especially listed ones, have clear social responsibilities and invest heavily in local communities. At Lipari, we invest 2.8% of our gross sales in health, education, and other initiatives. 

Do you have a final message?

Natural diamonds carry a unique story and history: the Braúna kimberlite erupted about 640 million years ago, long before life on Earth. These are the oldest diamonds on the planet, something no synthetic diamond made in a microwave oven can replicate. Natural diamonds are more than just an object; they are a piece of Earth itself.