United Arab Emirates Based Jemora Group Buys Diamond Miner Lucapa

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United Arab Emirates Jewellery News: A Landmark Acquisition in the Global Diamond Industry

The diamond industry has been rattled by a groundbreaking development as Jemora Group, a United Arab Emirates–based conglomerate, finalizes the purchase of Lucapa Diamond Company. The acquisition, orchestrated through Jemora’s mining subsidiary Gaston International, provides a much-needed lifeline to the financially troubled miner while also positioning Dubai and the wider UAE as a rising hub for natural resource investments. According to official statements, the deal is valued at approximately US$10 million and encompasses Lucapa’s diamond mines in Africa as well as its projects in Australia. This United Arab Emirates Jewellery News report highlights why the takeover has sparked such intense interest across both the mining and luxury sectors.

Lucapa’s Lulo mines are famous for yielding a lot of unique colored diamonds
Image Credit: StockShots

The Collapse of Lucapa and Its Search for Rescue

Lucapa Diamond Company, once considered a promising mid-tier mining player, spiraled into involuntary administration in May 2025 after a series of setbacks. Lower natural diamond prices, fierce competition from the booming lab-grown diamond sector, operational challenges such as flooding at the Lulo mine, and even local disputes all contributed to its downfall. Melbourne-based administrators Richard Tucker and Paul Pracilio of KordaMentha Restructuring were appointed to oversee the company’s future. Their dual-track strategy of either recapitalizing Lucapa or selling its assets culminated in Jemora Group’s successful bid, which not only ensures creditor repayment but also provides partial compensation to shareholders.

Lulo Diamond Mine – A Crown Jewel in Angola

At the center of Lucapa’s portfolio lies the Lulo alluvial mine in Angola, often celebrated as the world’s highest dollar-per-carat diamond producer. In 2021 alone, the mine achieved an average of US$2,806 per carat. Since beginning operations in 2015, Lulo has produced 48 exceptional Type IIa diamonds exceeding 100 carats, including Angola’s largest recorded diamond—the 404-carat “4 de Fevereiro”—and the famous “Lulo Rose,” a vivid pink diamond weighing 170 carats discovered in 2022. The concession still contains an estimated 249,000 carats of recoverable stones. Equipped with two state-of-the-art processing plants capable of handling 600,000 cubic meters of gravel annually, the mine is strategically positioned for expanded production under Jemora’s stewardship.

Dev Shetty, founder of Jemora Group
Image Credit: Jemora

Kimberlite Exploration – Unlocking New Sources

In addition to its stake in the operating mine, Lucapa also controls 39 percent of the Lulo Kimberlite Exploration Project. The program, conducted alongside Angola’s national diamond company Endiama and private firm Rosas & Petalas, aims to identify the primary kimberlite sources responsible for Lulo’s extraordinary alluvial finds. To date, more than 100 kimberlites have been confirmed within the concession area, some of which already contain Type IIa diamonds. This signals considerable exploration potential and reinforces the strategic value of Jemora’s acquisition.

Expansion into Australia’s Diamond Heritage

Beyond Africa, Lucapa’s portfolio includes assets in Australia that will now transition to Jemora. These feature the Merlin Diamond Project in the Northern Territory, where Australia’s largest diamond was unearthed. Historically, 75 percent of Merlin’s yield has been gem or near-gem quality stones, including rare pinks, blues, and yellows. Lucapa also holds majority rights to the Brooking Diamond Project in Western Australia, which is considered a promising exploration prospect. Jemora intends to launch a comprehensive review of Merlin, with plans to increase output and potentially reintroduce Australia as a leading player in global diamond supply.

A Vision for Dubai as a Global Mining Hub

The acquisition has been widely seen as part of Jemora Group’s broader strategy to cement the UAE’s role as a major hub for the global mining and gemstone trade. Founded in 2024 by industry veteran Dev Shetty, Jemora operates across metals, mining, and gemstone trading. Its subsidiary Gaston International not only invests in diamonds but has also moved into copper with the recent signing of an agreement to acquire Bolivia’s Chacarilla Copper Mine. Shetty, formerly associated with Fura Gems and Gemfields, brings decades of experience in navigating commodity cycles and unlocking value from underperforming assets.

Financial Restructuring and Creditor Payouts

One of the most important elements of the transaction is its ability to resolve Lucapa’s financial crisis. Jemora’s deal includes the injection of approximately A$15 million, which will allow creditors to be repaid in full. Shareholders, who were left in limbo after the company entered administration, will receive up to 1.8 Australian cents per share. This is slightly above Lucapa’s last traded price before its collapse, signaling at least a partial recovery of investor confidence. The administrators have emphasized that final approval will depend on creditor votes and necessary regulatory and court clearances.

Strategic Support from Dubai’s Commodities Sector

The Dubai Multi Commodities Centre (DMCC), one of the world’s most influential platforms for the diamond trade, has hailed the acquisition as a pivotal moment. Ahmed Bin Sulayem, DMCC’s executive chairman and CEO, described the Lulo mine as a “strategic asset of worldwide importance” and praised Jemora’s leadership in ensuring Dubai remains a global diamond hub. With Angola’s recent signing of the Luanda Accord—a framework agreement among diamond-producing nations to promote natural diamonds—the timing further amplifies the strategic value of this deal.

Market Relevance and Global Impact

This acquisition occurs against the backdrop of turbulent conditions in the diamond industry. Natural diamonds have faced pricing pressure due to the rising popularity of lab-grown stones and shifting consumer demand. However, Lulo and Merlin’s production of rare colored diamonds provides Jemora with an edge, as these stones command exceptional premiums in the luxury market. Analysts believe Jemora’s ability to integrate mining operations with Dubai’s advanced trading and auction platforms could redefine how natural diamonds are marketed and valued globally.

Looking Ahead

The Jemora Group’s acquisition of Lucapa Diamond Company represents more than a simple corporate transaction—it signals a reordering of the global diamond landscape. With plans to scale up Lulo’s production, advance kimberlite exploration, and revive Merlin, Jemora is well positioned to harness both Africa’s and Australia’s unique resources. By combining mining assets with Dubai’s world-class trading ecosystem, Jemora aims to create a vertically integrated powerhouse that can weather market volatility while continuing to deliver high-value stones.

This bold move also highlights the UAE’s growing importance in the commodities sector. For decades, Antwerp and Mumbai have dominated the diamond industry, but Dubai is steadily reshaping the map. If Jemora succeeds in revitalizing Lucapa, it could inspire further consolidation and investment in natural diamonds, counterbalancing the disruptive rise of lab-grown alternatives. Ultimately, the deal underscores the shifting dynamics of the global gemstone trade, where financial strength, geographical positioning, and strategic vision increasingly matter as much as geology itself.

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