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
EditorsNov 06, 2026
The Spectrum Pieces I Can’t Stop Thinking AboutFrom a Betta fish brooch to a “dragon’s trove” of zircon eggs, here are seven pieces that’ve stuck with Associate Editor Lauren McLemore.
TrendsNov 06, 2026
Pat Pruitt’s DragonFly Earrings Take Flight on Election NightGroundbreaking New Mexico Governor-elect Deb Haaland wore the earrings, our Piece of the Week, when she declared victory on Tuesday.
MajorsNov 06, 2026
SNL’s Colin Jost Finds the Perfect Gift in Kay Jewelers’ Holiday AdJost goes on an epic journey, traversing rough seas and encountering a cyclops, to discover the perfect holiday gift.
Brought to you by
How Overnight Mountings’ Bridal Builder Makes Custom Engagement Ring Design Easier to SellWith customization becoming more expected in engagement ring shopping, the Bridal Builder makes the process tangible.
Supplier BulletinNov 05, 2026
Winning With GCAL 8X®: What’s Working at the CounterSponsored by GCAL by Sarine
Weekly QuizNov 05, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SurveysNov 05, 2026
What Retailers Should Know About Holiday Shoppers This YearFrom shrinking budgets to AI elves, here are five takeaways from holiday reports by Bain, Adobe, Mastercard, NRF, and insights from YouGov.
CollectionsNov 05, 2026
Judi Powers, Russell Jones Unleash Joy With New CollaborationThe designers combined their talents for Little Pet Portraits, hand-painted miniatures of our best friends set in a piece of jewelry.
Brought to you by
A Diamond Is Forever Launches 2026 Holiday Campaign Championing Natural DiamondsA Diamond Is Forever's holiday campaign reimagines natural diamond icons for a new generation celebrating individuality.
FinancialsNov 05, 2026
Brilliant Earth Continued to Resonate With High-Income Shoppers in Q3Its non-bridal fine jewelry remains the star of the show, recently launching new collections inspired by Elizabeth Taylor and Jane Goodall.
MajorsNov 05, 2026
Ariana Grande Stars In Swarovski’s Holiday Campaign“Joy: The Swarovski Musical” features Ariana Grande as the leading lady in scenes inspired by classic musical montages.
GradingNov 05, 2026
GIA to Offer Next-Day Holiday ServicesThe lab will bring back its complimentary next-day service for some reports starting next week.
CrimeNov 04, 2026
$250K+ in Undeclared Cartier Jewelry Seized at Philadelphia AirportA Pennsylvania woman failed to declare a ring and a bracelet, discarding the boxes and receipts to conceal the purchases, officials said.
FinancialsNov 04, 2026
Pandora’s Q3 Sales Up 7% Amid Focus on DesignNew collections and relevant marketing pushed the company forward, while Pandora’s lab-grown diamond sales continue to lag.
Events & AwardsNov 04, 2026
NYC Jewelry Week 2026 Is the Largest Edition YetThe citywide celebration, slated for Nov. 16-22, is set to host more than 175 events, including live jewelry-making demos.
MajorsNov 04, 2026
Bergdorf Goodman Names New PresidentLanessa Elrod, former president and CEO of Louis Vuitton Americas, has stepped into the role as the retailer celebrates 125 years.
AuctionsNov 03, 2026
Infinity Gauntlet Set With 170+ Carats of Colored Gemstones Up for AuctionA replica of one of the most powerful objects in the Marvel Cinematic Universe, the glove is heading to auction next month in Abu Dhabi.
IndependentsNov 03, 2026
Longtime Jewelry Marketer Arthur Klein Dies at 89Klein, who had his own marketing agency and worked for Gabriel & Co. and Trans American Diamond, is remembered as a kind man.
IndependentsNov 03, 2026
Zadok Jewelers Toasts To 50 Years With Diamond Bracelet GiveawayTo enter the giveaway, locals can purchase a featured beverage from one of eight participating restaurants in Houston and Austin, Texas.
Events & AwardsNov 03, 2026
David Yurman Gem Awards Grant Opens 2027 ApplicationsThe grant recipient will be awarded $50,000 as well as mentoring meetings with executives at David Yurman and other industry executives.
Events & AwardsNov 03, 2026
NAJA, Instappraise Name 2026 Scholarship WinnersThe winners include a non-NAJA member seeking training, a member beginning NAJA courses, and a member becoming a Certified Master Appraiser.
AuctionsNov 02, 2026
197-Carat ‘Romanov Sapphire’ Heads to Sotheby’s GenevaThe rare jewel, which has links to Russia’s Romanov dynasty, is estimated to fetch up to $2 million.
CrimeNov 02, 2026
Customs Seizes More Than 400 Fake Audemars Piguet WatchesIt is one of several seizures of counterfeit jewelry and watches by U.S. Customs and Border Protection officials in Louisville this year.
MajorsNov 02, 2026
Lawrence Bock, Caryl Capeci, Amanda Coleman-Phelps Join JA Board Jewelers of America announced the additions to its board of directors following its annual general meeting, held last week.
CollectionsNov 02, 2026
Olympian Kristi Yamaguchi, Heller Jewelers Expand ‘Always Dream’ CollectionThe jewelry collection supports Yamaguchi’s Always Dream foundation, which provides reading and educational resources to families in need.
Events & AwardsOct 30, 2026
Illuminating Carved Paraiba Pendant, Suite of Moonstones Wow at Spectrum AwardsSpectrum’s “Best of Show” honors went to a 101-carat Paraiba carved to look like Medusa that has a magnet-activated LED light.
TrendsOct 30, 2026
Edina Kiss’ Pendants Say ‘Eye’m Watching You’Our Halloween Pieces of the Week are four “Eye” pendants, each set with colorful gemstones.
MajorsOct 30, 2026
The RealReal Hires Former eBay Exec as New Chief Merchandising OfficerAlexis Hoopes expanded eBay’s “Authenticity Guarantee” program during her tenure.
