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.
More on Sourcing
The Latest
Events & AwardsOct 17, 2025
An Edit of Italian Jewels Is Coming to NYCThe new showcase dedicated to Italian jewelry design is set for Oct. 29-30.
TrendsOct 17, 2025
Piece of the Week: Judi Powers Jewelry’s ‘Stella’ EarringsTake a gaze at the sky with this pair of platinum diamond-set star earrings with blue lace agate drops.
IndependentsOct 17, 2025
From the Jazz Age to the Information Age: London Jewelers Turns 100In 2026, the jewelry retailer will celebrate a milestone only a small percentage of family-owned businesses survive to see.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
IndependentsOct 16, 2025
Retailer Hall of Fame 2025: Jeffrey Zimmer Jeffrey Zimmer's decades of leadership at Reeds Jewelers are defined by integrity, a love of sourcing gemstones, and a heart for community.
Weekly QuizOct 16, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsOct 16, 2025
Sotheby’s Introduces Custom Jewelry ServiceThe new high jewelry design and production process takes 30 days or less from concept to completion, the auction house said.
MajorsOct 16, 2025
Oscar Heyman’s Holiday Catalog Is Out, and It’s SpectacularThe holiday catalog for 2025 features never-before-seen images of more than 100 one-of-a-kind masterpieces.
Brought to you by
JA New York Fall Is Right Around the CornerThe upcoming show provides savvy retailers with the opportunity to stock their cases with best sellers in advance of the holiday season.
CollectionsOct 16, 2025
Foundrae Adds To ‘United in Love’ CollectionThe brand has released a second installment of its collection of traditional and non-traditional commitment heirlooms.
IndependentsOct 15, 2025
Retailer Hall of Fame 2025: Kathy CoreyCorey rescued New England chain Day’s Jewelers, preserving its legacy with strong people skills, pragmatism, and a “get-it-done” attitude.
CrimeOct 15, 2025
Men Receive Lengthy Prison Sentences for 2023 Murder of Colorado JewelerCharles Robinson Shay was sentenced to life in prison plus 120 years while his accomplice, Michael James McCormack, got 75 years.
Events & AwardsOct 15, 2025
‘Douriean Fletcher: Jewelry of the Afrofuture’ Opens at MADThe Museum of Arts and Design's new exhibition features 75 pieces by the designer, best known for her work in the “Black Panther” films.
Events & AwardsOct 15, 2025
JCK, Luxury to Debut New Watch Section in Vegas Next YearTimepieces at Luxury will take place at The Venetian and, like Luxury, will be invitation-only for the first two days.
AuctionsOct 15, 2025
Christie's Announces New Jewelry Department LeadershipThe auction house named a new global head of jewelry, as well as a new head of the jewelry department for the Americas.
IndependentsOct 14, 2025
Retailer Hall of Fame 2025: Tom DixonAs chairman of Schwanke-Kasten Jewelers, Tom Dixon has been tasked with honoring the past and shaping the future of the family-run store.
Events & AwardsOct 14, 2025
Here Are the Winners of the BIJC, JA ‘Emerging Jewelers’ Grant Katty Villapando Lyte and Mica Rencher received a $10,000 grant for their business, Shimmer Culture LLC.
IndependentsOct 14, 2025
Day’s Jewelers Crafts Custom Jewelry for No.1 NBA Draft Pick Cooper FlaggThe parents of the Dallas Mavericks rookie bought their engagement ring at a Day’s store in Bangor, Maine, in 1997.
CollectionsOct 10, 2025
Count Down to the Holidays With Astrid & Miyu’s Advent CalendarsThe trio of Advent calendars include a version with 18-karat gold and lab-grown diamond jewelry in a red lacquer jewelry box.
CollectionsOct 10, 2025
Piece of the Week: Marla Aaron’s ‘Nymphenburg Lock’Created in collaboration with Nymphenburg Porcelain, the lock is part of a four-piece collection that took two years to bring to fruition.
MajorsOct 10, 2025
Frederick Goldman Names New VP of SalesJewelry industry veteran Alisa Bunger has taken on the role.
AuctionsOct 09, 2025
This Fabergé Egg Could Crack $27M At Auction“The Winter Egg” set the world auction record for a Fabergé piece twice at previous Christie’s sales.
MajorsOct 09, 2025
Sy Kessler Buying Watch Batteries as Silver Hits Record High The company will pay 1.5x silver’s current spot price for each pound of silver oxide batteries submitted.
CollectionsOct 09, 2025
Katkim Launches First Men’s CollectionThe line includes a “Shadow” series crafted exclusively for the new men’s offering and reimagined styles from the brand’s core collections.
SourcingOct 09, 2025
Gemfields’ Mini Mixed-Quality Ruby Auction Garners $11MThe rough on offer was recovered from a newer area at the Montepuez mine.
SourcingOct 08, 2025
In ‘Storied Diamond,’ Jared Jewelers Is Emphasizing the Journey The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.
CollectionsOct 08, 2025
Emily P. Wheeler Shifts Into Neutral for Latest ‘Ombré’ CollectionThe champagne colorway in her newest “Ombré” collection combines white and trendy brown diamonds, a departure from her usual vibrant hues.
CollectionsOct 08, 2025
Tsuba Designs Inspire Monica Rich Kosann’s New CharmsKosann partnered with the Museum of Fine Arts, Boston, to create a set of necklaces inspired by the artwork on samurai sword handguards.
