Lucara ventures into underground mining
Lucara Botswana has mined over 29 million tonnes of ore out of which 4.58 million carats were produced since its inception 10 years ago.
This, according to President Mokgweetsi Masisi is an impressive performance for a relatively new and small mine in Botswana. Speaking on the occasion of the underground Karowe Mine project, groundbreaking ceremony earlier this week, Masisi noted that over the 10 years, the mine has produced large stones that include Lesedi la Rona, and Sewelo that weighed 1, 109 carats and 1, 758 carats respectively. In fact, Masisi noted that the 1.758 carats diamond was the second largest stone in the history of diamond mining, and the largest diamond to be recovered in over 100 years. The President also said that the commencement of the underground mining will extend the life of the Karowe Mine to 2046. “This is a welcome development as this will ensure a continuation of a mutually- beneficial relationship between Lucara Botswana, the government of Botswana, and the communities of this area,” he explained. The project, he said, is not an easy undertaking, as it is the first diamond mining operating in Botswana to convert from open pit to underground mining. This, he noted, will of course require new skill- sets and substantial investments estimated at about P5 billion. “I am certain that on all fronts, that is a skills development and raising the required funding, Lucara Botswana will rise to the challenge. Construction of this project which commences with this groundbreaking event is expected to continue until 2024,” he said. He also highlighted that during the construction phase, 850 jobs will be created and that the project will be commissioned in 2025 with full production planned for 2026. “It is my ardent hope that some components of this project will be undertaken by citizens or citizens- owned entities. Citizen economic empowerment is very close to my heart and I am highly optimistic that Lucara Botswana would live to that expectation,” he explained.
Masisi said that the project comes at a time when the market for diamonds is showing signs of improvement in spite of prevailing global challenges presented by the Covid- 19 pandemic.
Meanwhile, the CEO of Lucara International, Eira Thomas, said that it was a special day as the company was celebrating two special milestones.
For those who have witnessed the entire journey of Lucara Botswana, she said that this was a moment that calls for reflection and celebrating the many achievements of an extraordinary company having mined and sold over 3.5 million carats, generating revenues approaching US$ 2 billion, and the first and only diamond company in recorded history to have ever recovered three diamonds in excess of 1000 carats. She said that the concept of the company was born out of an extended lunch between three long- time mining friends in Vancouver, 15 years ago. The early prospect of the company, she said, began in the mountains of Lesotho. “By 2009, the AK 6 kimberlite situated in North Central Botswana came under our radar,” she said. They went on to purchase 25 percent shares from DeBeers, and eventually consolidate 100 percent ownership. Two years later, they christened the Mine, Karowe, meaning precious stone in Setswana.
By early 2015, they had already gained a reputation as an important source of large high- value type 2 diamonds. “Today, it is estimated that our little mine alone contributes around twentyfive percent of the world’s largest most valuable diamonds and accounts for four diamonds in the world’s top ten of all large exceptional diamonds recorded dating back to 1893,” she explained. Thomas said that they had anticipated the potential to recover the type 2 stones at Karowe and that it was part of their investment theme. But that when they began to regularly recover exceptional gem diamonds in excess of 50, 100, up to 500 carats in size, they came to understand just how special this deposit truly was. “To date, we have recovered a staggering 26 diamonds greater than 300 carats, and seven over 500 carats including three greater than 1000 recovered in 2015, 2019, and 2021. No other diamond mine in the world has achieved that,” said Thomas.
She also highlighted that their success owes in part to the special geological endowment that is Karowe. Lucara’s success is also due to its willingness to seek, embrace and incorporate innovation and technology into its mine design.