Canada’s Lucara Diamond Corp announced a P1.5 billion investment to expand its flagship Karowe Mine in Botswana, extending the mine’s lifespan beyond 2040.
The Toronto Stock Exchange mining junior known to produce exceptionally large stones announced that it has allocated $115 million (approximately P1.5 billion) for 2025, saying the initiative represents a critical phase in extending the life of the mine.
William Lamb, Lucara’s President and CEO, described the underground development as central to the company’s vision of sustaining the mine’s life beyond 2040.
The Karowe Mine, operational since 2012, has been the jewel in Lucara’s crown, renowned for producing some of the largest and most exquisite diamonds on record.
The mine’s transition to underground operations is expected to unlock additional high-grade resources, particularly from the South Lobe, which boasts a significant percentage of diamonds over 10.8 carats. In 2025, Lucara plans to recover between 360,000 and 400,000 carats of diamonds, contributing to projected revenues of $195 million to $225 million.
Lamb emphasised that the underground expansion would ensure a consistent supply of premium-quality stones while cementing Botswana’s standing as a premier diamond producer.
Lucara’s investment in Karowe’s future is not limited to mining; it also encompasses significant commitments to sustainability and operational efficiency. The 2025 budget allocates up to $13 million for sustaining capital, which will cover critical infrastructure upgrades, the expansion of the tailing’s storage facility, and other measures to optimise resource recovery.
The underground development has already achieved considerable milestones, including record-breaking progress in shaft sinking and lateral development in 2024. The company plans to build on this momentum by completing key infrastructure projects in 2025, such as equipping the production shaft and advancing surface works, including permanent winders. “Tendering contracts for lateral development and purchasing essential underground equipment are also high on the agenda,” said Lamb.
Beyond its operational goals, Lucara’s posted a revised revenue expectation saying revenue would be lower than expected for its 2024 financial year – $160 million to $180 million compared to a previous forecast of $220-$250 million – as it sold fewer high-value stones than previously expected.
Total cash costs will range between $28,50 and $31 per ton processed for the year which compares to expectations of $28.50 to $33.50/t for 2024 as per the firm’s updated guidance on November 13.
The mining junior projects that a significant portion of its revenue will come from stones recovered from the higher-value mixed/pyroclastic kimberlite (South) and eroded massive/pyroclastic kimberlite (South) units within the South Lobe, as well as from the sale of its existing diamond inventory. While the South Lobe has a lower grade compared to the Centre and North Lobes, it contains a higher proportion of diamonds weighing more than 10.8 carats, known as ‘specials.
Lucara further revealed that mining and processing activities will involve 1.8 million to 2.2 million tonnes of combined ore and waste, to be processed alongside stockpiled material. These efforts align with historical plant performance and are designed to ensure uninterrupted mill feed until 2027 when development ore from the Karowe underground project (UGP) will supplement stockpiles with high-grade material. Full-scale underground production is expected in the first half of 2028.
