Botswana: Lucara diamond mine extension delayed by two years

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The expansion of the Karowe diamond mine, owned by Lucara Diamond (a Canadian company specializing in the export and exploitation of these gemstones), has been delayed.  The work, originally planned for 2026, should finally be completed in 2028.

 

The expansion of the Karowe diamond mine (Editor’s note: meaning gemstone in the local language), owned by Lucara Diamond, will take longer than expected. As a result, the start of underground mining was postponed to the first quarter of 2028, whereas the initial plans envisaged the second half of 2026.

 

The Canadian company explained in a press release that this two-year delay was due to an increase in the duration of the work, due in particular to the slower than expected speed of execution of the sinking (digging a mine shaft).

 

These disruptions affect construction costs, now $683 million, up 25% from the May 2022 estimate.

 

However, last year, the mine delivered almost 336,000 carats, but it is expected to produce up to 425,000 carats in 2023, according to its owner’s plans.

 

Despite these challenges, the project continues to have strong economic characteristics: it makes it possible to repay the capital in less than three years and increase revenues by about $4 billion on the basis of conservative assumptions about the price of diamonds,”says Eira Thomas, the company’s CEO.

 

The Karowe diamond mine is one of the few projects in Botswana that is not part of the agreement between the government and the South African company De Beers. This partnership between the Canadian actor and the authorities, however, remains unwavering, as shown by the two-year renewal of the mining licence, which was renewed until 2046.

 

Read also >Metamorphosis: the second chapter in the De Beers fine jewelry collection

 

Featured photo : © Press

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Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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