Lucara Diamond says the estimated capital cost for the Karowe underground expansion project, in Botswana, has increased from $534 million to $547 million.
It said the increase reflects expected pricing changes following the execution of the main sink contract.
Mine ramp-up is expected in the first quarter of 2026 with full production from the Karowe underground expansion projected anticipated in the second half of 2026.
Lucara spent $29.1 million on the Karowe underground expansion project during the three months ended June 30, 2022.
This was mainly on construction activities and procurement of long lead items, including pre-sink activities for both the production and ventilation shafts.
The main sink contract for the production and ventilation shafts was executed and the main sinking of the ventilation shaft commenced.
“The transition from the pre-sink to the main sinking phase has been slower than anticipated however, opportunities have been identified to decrease main sink cycle times and reduce the impact [on] the schedule,” said Lucara.
It said activities for the Karowe underground expansion project in the upcoming quarters of 2022 include the commencement of the main sinking for the production shaft, awarding of bulk air cooler tender and continued procurement of underground equipment.
The miner will also continue with the detailed design and engineering of the underground mine infrastructure and layout as well as commission a 29-kilometre 132 kilovolts bulk power supply powerline by the end of the year.
The Karowe underground expansion project is expected to extend the mine life to at least 2040, with underground carat production predominantly from the highest value EM/PK(S) unit and is forecast to contribute about $4 billion in additional revenues, using conservative diamond prices.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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