Dubai is strengthening its role as a global hub for resource investment, with Jemora Group striking a $10 million rescue deal to revive struggling diamond miner Lucapa Diamond Company (ASX: LOM).
Administrators KordaMentha confirmed that Jemora’s subsidiary, Gaston International, has signed a deed of company arrangement to inject around A$15 million (US$10 million) into Lucapa, which operates Angola’s Lulo alluvial mine and the Merlin project in Australia.
A Strategic UAE Play
Jemora, a diversified metals and mining conglomerate, is positioning Dubai as a center for global resource financing. Through Gaston, its energy and precious metals arm, Jemora aims to consolidate the UAE’s growing influence in mining, particularly in Africa and Australia.
If approved by creditors and the court, the deal would:
- Fully repay Lucapa’s creditors.
- Provide shareholders with a partial payout above recent market value.
- Transfer company control to Jemora, giving the group direct access to Lucapa’s assets in Angola and Australia.
Lucapa’s Struggles, Jemora’s Opportunity
Lucapa entered administration in May after being hit by falling diamond prices, competition from synthetics, and operational setbacks at its Lulo mine — including flooding and local community disputes.
The company also sold its Mothae mine in Lesotho in 2023, leaving Lulo as its only revenue source, while attempts to raise equity and sell a stake in Merlin failed earlier this year. Administrators ruled Lucapa insolvent by May 21.
Jemora’s intervention comes at a critical moment. With diamond prices under pressure, Dubai’s move to back Lucapa not only stabilizes the miner but also reinforces the UAE’s strategy of becoming a leading global hub for commodities and mining investment.
What’s Next
Creditors will vote on the proposal on August 20, 2025, which, if approved, will restructure Lucapa’s balance sheet and bring the company under Jemora’s control.
For Dubai, the deal is more than a bailout — it is another step in building its reputation as the go-to capital for resource finance and investment.