Botswana has discovered the world’s second-largest diamond, a 2,492-carat gem unearthed by Canadian mining company Lucara Diamond.
Financial Times provided that the weighted diamond discovered, is the largest gem-quality find since the Cullinan diamond, discovered over a century ago and later incorporated into the British Crown Jewels.
Reports provide that this discovery would ‘offer some relief to a sector impacted by the rise of lab-grown stones, as mining contributes about a quarter of Botswana’s GDP.
Former executive of De Beers and now head of mining companies in southern Africa, Clifford Elphick, described the discovery as “once-in-hundreds of years event” and “the most significant of this century.”
Lucara estimates the diamond could be valued at over $40 million, causing a 40% surge in the company’s share price on Thursday.
Lucara’s CEO, William Lamb, told the Financial Times that the diamond represents “a sparkle in a gloomy market” and aims to use it to enhance the diamond sector and Botswana’s profile.
The diamond sector, according to expanded reports, has faced disruptions from synthetic stones and reduced luxury spending, leading to Anglo American’s sale of De Beers.
But nevertheless, significant discoveries like this one continue to be crucial for generating revenue and marketing power.
“The challenge is that a stone like this needs to be used to drive interest in the diamond market,” Lamb said.
Botswana President, Mokgweetsi Masisi was presented with the diamond on Thursday.
Lucara’s Karowe mine, by reputation, is known for other notable discoveries including the 1,758-carat Sewelô and the 1,109-carat Lesedi La Rona. The stone, which is too large for conventional analysis, was discovered using X-ray transmission technology implemented after the Lesedi La Rona was damaged.
Lucara’s previous major sale was the 2017 auction of the Lesedi La Rona for $53 million. While the new diamond’s final value will depend on its quality and coloring, potential buyers include luxury brands such as Louis Vuitton, Bulgari, and Tiffany. However, analyst Raj Ray from BMO cautioned that marketing must be handled carefully to realize the diamond’s maximum value.
In a clear light, the discovery of the 2,492-carat diamond in Botswana highlights the ongoing potential for significant finds in the diamond industry. While the sector faces challenges from synthetic alternatives and changing consumer behaviors, such landmark discoveries can rejuvenate interest and investment.