SourcingJul 12, 2023
CEO of Diamond Miner Lucapa Stepping DownSourcingJul 19, 2023
Lucara’s Underground Expansion at Karowe Hits a Snag
The miner said this week that the project will cost $136 million more than expected and take about a year-and-a-half longer to complete.
An aerial view of the Karowe diamond mine in Botswana. Owner Lucara Diamond Corp. is in the process of taking the mine underground and extending its life until 2040, though it reported this week that it has encountered a delay.
Vancouver, B.C.—The underground expansion at Botswana’s Karowe diamond mine will take longer than expected and cost more, owner Lucara Diamond Corp. said this week.
The company provided an update on the project Sunday, stating there is more water underground than it anticipated, which has required additional grouting. (Grouting is used in the construction, development and operation of underground mines in order to keep groundwater from leaking into the mine.)
Lucara said the additional grouting is expected to delay the start of underground production by 18 months, pushing it from the second half of 2026 to the first half of 2028.
It also will increase the project’s cost by 25 percent, from $547 million estimated in May 2022 to $683 million.
Despite the delay and added costs, Lucara’s main shareholder, The Lundin Group, said in Sunday’s update that it remains supportive of the project and bullish on the future of the mine.
“The Karowe underground mine expansion provides access to the highest-value portion of the orebody responsible for delivering numerous record-breaking diamonds in respect of size and value, including three diamonds in excess of 1,000 carats,” said Adam Lundin, a director of Lucara.
Karowe produced the 1,109-carat “Lesedi La Rona” diamond in 2015—the tennis ball-sized stone Laurence Graff bought for $53 million—and the 1,758-carat “Sewelô” diamond, among other large and notable stones.
Lundin added, “The project remains highly economic, despite the delays incurred and as Lucara’s largest shareholder, we remain fully supportive of the company.”
Related stories will be right here …
The company provided an update on the project Sunday, stating there is more water underground than it anticipated, which has required additional grouting. (Grouting is used in the construction, development and operation of underground mines in order to keep groundwater from leaking into the mine.)
Lucara said the additional grouting is expected to delay the start of underground production by 18 months, pushing it from the second half of 2026 to the first half of 2028.
It also will increase the project’s cost by 25 percent, from $547 million estimated in May 2022 to $683 million.
Despite the delay and added costs, Lucara’s main shareholder, The Lundin Group, said in Sunday’s update that it remains supportive of the project and bullish on the future of the mine.
“The Karowe underground mine expansion provides access to the highest-value portion of the orebody responsible for delivering numerous record-breaking diamonds in respect of size and value, including three diamonds in excess of 1,000 carats,” said Adam Lundin, a director of Lucara.
Karowe produced the 1,109-carat “Lesedi La Rona” diamond in 2015—the tennis ball-sized stone Laurence Graff bought for $53 million—and the 1,758-carat “Sewelô” diamond, among other large and notable stones.
Lundin added, “The project remains highly economic, despite the delays incurred and as Lucara’s largest shareholder, we remain fully supportive of the company.”
Lucara announced its intention to go underground at Karowe in 2019.
When completed, the project will keep the mine running until at least 2040, essentially doubling its lifespan.
It is expected to result in $4 billion in additional revenue using “conservative” diamond price assumptions, the miner said.
Karowe opened in 2012, and the open-pit portion of the operation is expected to be mined out by 2026.
On Sunday, Lucara said it has sufficient stockpiles of kimberlite ore from the South, Centre and North lobes to maintain the current level of feed to the mine’s processing plant for the duration of the delay.
It added that the long-term outlook for diamond prices, combined with the mine’s potential for producing exceptional stones and the continued strong performance of the open pit, could mitigate the impact the delay is expected to have on cash flow.
Editors' Picks
Sponsored by
More on Sourcing
The Latest
CrimeApr 22, 2026
New Mexico Couple Pleads Guilty to Selling Fake Native American JewelryThe pair falsely claimed their jewelry was made by Navajo artists, but it was imported from Vietnam.
AuctionsApr 22, 2026
Roberta Flack’s Jewelry Is Going Up for AuctionJulien’s Auctions is selling the musician’s fine and fashion jewelry alongside her clothing, gold records, and other memorabilia.
CollectionsApr 22, 2026
British Museum Curator Pens Book on ‘The Tudor Heart’Rachel King’s book dives into the history of the pendant believed to have belonged to Henry VIII and his first wife, Katherine of Aragon.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
Events & AwardsApr 22, 2026
Here’s What Sy Kessler Has on Tap for Las Vegas The company will have deals on precious metals testers as well as the latest in lab-grown diamond detection technology and security.
Weekly QuizApr 16, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
WatchesApr 21, 2026
Coco Chanel Enters the Game with New Watch CollectionGabrielle “Coco” Chanel is a character in the “Coco Game” collection of watches and the queen in its first haute horlogerie chessboard.
IndependentsApr 21, 2026
Meet Jewelers of America’s 2026 ‘20 Under 40’ ClassThe annual list honors rising professionals on the retail and supply sides of the jewelry industry.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeApr 21, 2026
Customs Nabs 1,500 Pieces of Counterfeit Jewelry Bound for NYCSeized in Kentucky, the packages include fake Cartier, Tiffany & Co., Chanel, and Fendi jewelry.
CrimeApr 20, 2026
Queens Man Convicted in Bludgeoning Death of Pawn Shop OwnerRodolfo Lopez-Portillo faces 25 years to life in prison after being found guilty in the March 2022 beating death of Arasb Shoughi.
TrendsApr 20, 2026
Beth Bernstein, Sonia Esther Soltani Pen New Jewelry Book“Jewelry Creators: Dynamic Duos and Generational Gems” highlights the relationships among 22 influential designers, brands, and gem dealers.
Events & AwardsApr 20, 2026
Atlanta Jewelry Show’s Spring Event Is Hitting the RoadThe AJS Spring 2027 show will be held in Savannah, Georgia, with future shows taking place in other Southeast cities.
MajorsApr 20, 2026
Kendra Scott Names New CFO, Chief Business OfficerThe jewelry retailer plans to open 20 new stores this year and expand into new product categories.
TrendsApr 17, 2026
New (Groundbreaking) Floral Jewelry for Spring 2026Flower motifs are the jewelry trend blooming amongst the new collections that debuted this spring.
MajorsApr 17, 2026
QVC Group Files for Chapter 11 BankruptcyThe retailer reported an 8 percent decline in annual sales as it struggles under the weight of billions of dollars of debt.
CollectionsApr 17, 2026
Edina Kiss’ Earrings Are the Devil on Your ShoulderThe “Devil” drop earrings, our Piece of the Week, are part of designer Edina Kiss’ new namesake jewelry line that she will show at Couture.
CrimeApr 17, 2026
FBI Issues Warning to Refineries, Retailers Due to High Price of GoldThe alert states that burglary crews are targeting jewelry businesses and details how jewelers and refineries can protect themselves.
WatchesApr 16, 2026
Cartier Brings Back the RoadsterThe “watchmaker of shapes” debuted the reworked version of the vintage sports car-inspired timepiece at Watches & Wonders.
IndependentsApr 16, 2026
Edge Retail Academy Updates Leadership TeamAs demand for jewelry retail coaching grows, the company has established a dedicated business coaching leadership team.
MajorsApr 16, 2026
Stuller’s Latest Mountings Catalog Is Out NowThe “Mountings 2026-2027” catalog showcases Stuller’s largest and most diverse assortment to date with more than 400 new mounting styles.
PodcastsApr 15, 2026
Episode 4: The Natural Diamond DilemmaSally Morrison and Mark Klein discuss De Beers’ first beacon in 16 years and the mistake the industry made with lab-grown diamonds.
MajorsApr 15, 2026
Spark Creations’ Randy McKenzie Dies at 72 McKenzie spent 45 years with Spark Creations and is remembered for being kind, dedicated, and hardworking.
WatchesApr 15, 2026
These Are the New Rolex Watches for 2026Rolex focused exclusively on the Oyster Perpetual this year, as the model is celebrating its 100th anniversary.
FinancialsApr 15, 2026
Kering’s Jewelry Shines in Q1, Gucci’s Struggle ContinuesThe luxury giant discussed the Middle East conflict and its transformation plans, hinting at a stronger jewelry presence in North America.
TechnologyApr 15, 2026
This Jewelry Brand’s Video Series Is Up for a Webby Award“Diamond Divas,” a social media reality series by Shahla Karimi Jewelry, is nominated in the “Best Social: Fashion & Beauty” category.
FinancialsApr 14, 2026
LVMH’s Q1 Sales Sink 6% Amid Middle East ConflictPlus, how Saks Global’s bankruptcy affected the luxury giant’s first quarter.
SourcingApr 14, 2026
International Jade Summit to Return to MontereyPresented by Mason-Kay Jade, the summit, in its second year, will again be held during the Monterey Bay Jade Festival.
