Lucara steams ahead with Karowe underground expansion project

Lucara Diamond says it has made progress on the Karowe underground expansion project over the last 18 months, despite the challenges imposed by the global pandemic. 
Company chief executive Eira Thomas said the project is fully financed, allowing Lucara to move into high gear during the second half of the year. 
“Using conservative diamond price assumptions, the project delivers strong economics projected to pay back capital in under three years and add approximately $4 billion in revenues from an extended mine life out to at least 2040,” she said.
“The project also comes at a time when the outlook for the diamond market is stronger than it has been for many years representing an exciting growth opportunity for our shareholders and stakeholders in Botswana."
The Karowe underground expansion project is planned to extend the mine life to at least 2040 mining predominately from the highest value EM/PK(S) unit and is forecasted to contribute approximately $4 billion in additional revenues, using conservative diamond prices, starting in 2026.
The budgeted spend on underground expansion activities in 2021 is up to $120 million.
Out of the total capital budget, the company has spent $51.4 million on project execution activities through 2020 until the end of June 2021, including shaft and geotechnical engineering, procurement of long-lead time and essential shaft sinking items, surface infrastructure and construction activities, bulk power supply power line engineering and procurement. 

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished