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
CollectionsJan 27, 2026
De Beers London, GemFair Debut New Collection Highlighting Artisanal DiamondsThe collection marks the first time GemFair’s artisanal diamonds will be brought directly to consumers.
TechnologyJan 27, 2026
Clientbook Launches Appointment Booking ToolThe new tool can assign the appropriate associate based on the client or appointment type and automate personalized text message follow-ups.
SourcingJan 26, 2026
Angolan Diamond Cos. Join NDC as Rio Tinto, Murowa Exit Endiama and Sodiam will contribute money to the marketing of natural diamonds as new members of the Natural Diamond Council.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
MajorsJan 26, 2026
Francesca’s To Close All StoresThe retailer operates more than 450 boutiques across 45 states, according to its website.
Weekly QuizJan 22, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsJan 26, 2026
BIJC Names 5 New Board MembersThe new members’ skills span communications, business development, advocacy, and industry leadership.
CollectionsJan 26, 2026
Tiffany & Co. Celebrates 189 Years of Love StoriesThe jeweler’s 2026 Valentine’s Day campaign, “Celebrating Love Stories Since 1837,” includes a short firm starring actress Adria Arjona.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
GradingJan 26, 2026
DCA Updates Colored Gemstone CourseThe new features include interactive flashcards and scenario-based roleplay with AI tools.
MajorsJan 23, 2026
Watches of Switzerland Acquires 4-Store Jewelry Chain in TexasFamily-owned jewelry and watch retailer Deutsch & Deutsch has stores in El Paso, Laredo, McAllen, and Victoria.
WatchesJan 23, 2026
Damiani Group to Acquire Baume & MercierThe Italian luxury company purchased the nearly 200-year-old Swiss watch brand from Richemont.
TrendsJan 23, 2026
Martin Katz’s Earrings Call to Mind Wintry Weather Micro-set with hundreds of diamonds, these snowflake earrings recreate “winter’s most elegant silhouette,” and are our Piece of the Week.
MajorsJan 23, 2026
Rembrandt Charms Names New Director of Creative, Brand StrategyElla Blum was appointed to the newly created role.
Supplier BulletinJan 22, 2026
The Rise of Centralized Sourcing in the Colored Gemstone MarketSponsored by RapNet
MajorsJan 22, 2026
Lugano Diamonds Finds a BuyerInvestment firm Enhanced Retail Funding, a division of Gordon Brothers, was the successful bidder.
SourcingJan 22, 2026
De Beers To Release ‘A Diamond Is Forever’ BookIt explores the history of the iconic tagline and the company’s strategy to redefine the role of diamonds in society.
MajorsJan 22, 2026
Swarovski Appoints New North America PresidentRetail veteran Sindhu Culas has stepped into the role.
MajorsJan 22, 2026
Stuller Names New Chief Merchandising, Marketing, Sales OfficerTaylor Burgess, who has been at Stuller since 2013, was promoted to the newly created role.
PodcastsJan 21, 2026
Episode 1: High Gold Prices, the Diamond Dilemma, & What’s NextWas 2025 a good year for jewelers? Did lab-grown diamonds outsell natural? Find out on the first episode of the “My Next Question” podcast.
EditorsJan 21, 2026
6 Jewelry Designers Poised to Have a Breakout Year in 2026Whether you recognize their jewels or are just discovering them now, these designers’ talent and vision make them ones to watch this year.
CrimeJan 21, 2026
4 Men Charged in $1.7M California Smash-and-Grab Jewelry Store RobberyPlus, JSA’s Scott Guginsky discusses the need for jewelers to take more precautions as the gold price continues to climb.
IndependentsJan 21, 2026
Delaware Jeweler Felice Morris Dies at 91Morris’ most cherished role was being a mother and grandmother, her family said.
CollectionsJan 21, 2026
Bulgari Weaves New Collection of ‘Vimini’ Creations“Vimini” is the first chapter of the “Bulgari Eternal” collection that merges archival pieces with modern creations.
Events & AwardsJan 21, 2026
Jewelers Mutual’s ‘Conversations’ Retreat Returns to Discuss AIThe third edition will be held in Half Moon Bay, California, in April.
Events & AwardsJan 20, 2026
These Are the 5 Finalists for the David Yurman Gem Awards GrantThe grant is in its first year and was created to recognize an exceptional fine jewelry designer whose star is on the rise.
ColumnistsJan 20, 2026
First-Party Data Is the Most Valuable Asset Jewelers Have in 2026Data built on trust, not tracking, will be key to success going forward, as the era of “borrowed attention” ends, Emmanuel Raheb writes.
MajorsJan 20, 2026
Borsheims Hires New Assistant Facilities ManagerHeath Yarges brings two decades of experience to the role.
