Lucara spends P300m on Karowe underground project
Lucara Diamonds has announced that the company has spent $23.9 million (approximately P315.88 million) into the Karowe underground project during the third quarter of 2022.
According to the company, the activities for the quarter under review, included transition to main sink activities for both shafts, procurement of underground mobile equipment and construction of the upgraded transmission line and related substations.
“It was also a busy and productive period for the underground project,” Said Lucara President and Chief Executive Officer, Eira Thomas.
Thomas further said the Karowe underground project is expected to extend the mine life to 2040, with initial underground carat production predominantly from the highest value EM/PK (S) unit and is forecast to contribute approximately $4 billion (approximately P52.87 billion) in additional revenues, using conservative diamond prices.
And the updated estimated capital cost for the Karowe underground project is $547 million (approximately P7.2 billion), including contingency and reflects expected pricing changes following execution of the main sink contract in the second quarter of 2022.
“Mine ramp up is expected in 2026 with full production from the Karowe underground project expected in the second half of 2026.
“The company is using a combination of cash flow from operations and project debt for the investment in the Karowe underground project, which is fully financed,” he said.
Meanwhile, activities for the Karowe underground project in the fourth quarter of 2022 are expected to include sinking within both the ventilation and production shafts, procurement of underground equipment, including awarding the bulk air cooler tender and continuation of detailed design and engineering of the underground mine infrastructure and layout.
In addition, the project has also forecast commissioning the 29 km, 132kV bulk power supply powerline.