Lucara open to deal extension with HB Antwerp
Lucara, the Canadian miner operating Karowe Mine has announced intentions to renew its definitive supply agreement with Belgium’s HB Antwerp ( HB).
The two year deal, expected to expire this year, affords Lucara not to tender any of its + 10.8 carat inventory, with HB paying for the rough diamonds based on the estimated polished outcome, determined through state of the art scanning and planning technology. The proposed renewal will be second, after the contract was renewed in 2021 by a 24- month extension to December 2022. The Managing Director of Lucara’s Boteti Mining subsidiary, which owns Karowe Mine, Naseem Lahri said the agreement with HB has helped the company protect the value of its diamonds and are eager to renew the contract.
“We want government to help us to extend this deal, hopefully we will get an extension,” said Lahri, adding that HB has sophisticated mechanised polishing house. She also highlighted that HB is keen on local skills with the ultimate goal being setting up in Botswana.
Meanwhile, Lucara’s surface construction at the Karowe Mine’s underground plant is almost coming to an end.
“We are at the tail end of them, we will soon transition to the main sink,” said Operational Readiness Manager, Leonard Marumo citing that the construction is mostly of permanent infrastructure to last throughout the lifetime of the mine.
So far, the company has 683 vendors in its database with 626 being locals, 36 from the African continent and 21 outside Africa, as part of the project.
And the underground project has issued 388 tenders worthy over P2billion with only 224 awarded. Marumo said the underground development provides an opportunity for skills transfer for the locals and currently 732 work- force is employed with 84 percent being locals and only 16 expatriates.
“We have a strong and robust skills transfer initiative,” said Marumo.