Karowe underground project set to deliver 4.5 million carats

Canadian diamond producer Lucara Diamond Corporation has taken a major step toward extending the life of its flagship Karowe diamond mine in Botswana, with an updated technical report confirming strong long-term potential from its underground expansion.

According to the revised assessment, the Karowe underground project is expected to recover approximately 4.5 million carats over a ten-year mine life, reinforcing Lucara’s strategic decision to transition from open pit operations to underground mining.

The update builds on the existing feasibility study and underscores the company’s confidence in Karowe’s ability to continue delivering value well into the next decade.

Lucara president and CEO William Lamb said the underground development aligns with the mine’s exceptional legacy.

“We are excited about what lies ahead as we move underground at Karowe. This project gives us the opportunity to continue recovering large, high-value diamonds that have made Karowe globally unique,” Lamb said.

He noted that Karowe remains the only diamond mine in the world to have recovered nine diamonds weighing more than 1 000 carats each.

Financially, the underground project is expected to generate revenue and cash flow through to 2038.

Pre-production capital costs are estimated at $779 million, of which $436 million has already been invested over the past five years. The remaining $343 million is expected to be funded through a mix of operating cash flow, alongside potential equity or debt financing.

Lucara is currently engaging with its existing lenders and major shareholder to finalise the most suitable funding structure.

At present, the underground project carries an after-tax net present value of $432 million, highlighting its robust economic profile.

Once underground production begins in the first half of 2028, Lucara anticipates generating more than $1.3 billion in net income over the life of the project.

Lamb explained that the underground mine is targeting the highest-value portion of the South Lobe of the AK6 kimberlite, which extends below the current open pit.

“Our focus is firmly on the most valuable domain of the orebody, ensuring the underground operation is both technically sound and economically resilient,” he said.

The project has been designed to support a 2.85-million-tonne-per-year underground mine and processing plant, particularly as open pit mining at Karowe is scheduled to conclude in the first half of this year.

During the development phase, Lucara will continue processing stockpiled ore until the underground operation ramps up to full production in 2028.

With its proven ability to deliver rare, exceptional diamonds and a clear path toward long-term production, the Karowe underground project positions Lucara to remain a key player in Botswana’s diamond sector for years to come.