Karowe's Underground Expansion to Cost $779m
January 06, 26
(IDEX Online) - The underground expansion of the Karowe diamond mine, in Botswana, is set to cost a total of $779m, according to an updated technical report published yesterday (5 January) by Canadian miner Lucara.
Operations should begin in the first half of 2028, and the mine could potentially yield 4.5m carats, generating more than $1.3bn in net income over an estimated 10-year lifespan, according to Lucara's key operational projections.
Open pit mining is scheduled to end in 2026, and Lucara is pursuing the Karowe Underground Project (UGP) to prolong the life of the deposit. In the interim, before it transitions to underground mining, it will rely on the processing of stockpiled material.
Early projections around 2019-2020 pegged pre-production capital for the UGP at roughly $500m. An update in March 2024 raised that figure to $683m and January 2026 revisions pushed total to $779m. Lucara has so far spent $436m on the project.
The UGP targets the deepest, richest ore domains, responsible for record-breaking stones over 1,000 carats. Karowe is the only diamond mine in the world to have recovered nine diamonds in excess of 1,000 carats.
"We look forward to continue recovering large, exceptional diamonds from the underground project," said Lucara president and CEO William Lamb.
"Lucara is pleased to share the updated Feasibility Study for the Karowe Underground Project, which reinforces our strategic decision to extend mine life and continue to generate benefits for our stakeholders.
"Karowe is a world-class mine, and we look forward to continuing to recover large, exceptional diamonds from the underground project."