Type IIa diamonds are quite rare making up one to two percent of all natural diamonds and sourced from extreme depths of the earth’s mantle. The diamonds are almost or entirely devoid of impurities, making them of high value in the market.
In a statement announcing the discovery last Tuesday, Lucara Diamond officials said the 1,080 carat diamond represents the fourth +1,000 carat diamond recovered from the South Lobe of the AK6 kimberlite since 2015. Other notable recoveries include the 1,758 carat Sewelô in 2019, a 1,174 carat diamond in 2021, and the famous 1,109 carat Lesedi La Rona from 2015.
“As we progress mining deeper in the open pit and transition to underground mining, exclusively in the South Lobe, the preponderance of large, high value stones is increasing, consistent with the resource model and underpins the strong economic rationale for investing in the underground expansion that will extend the mine-life out to at least 2040,” said Lucara CEO, Eira Thomas. Karowe, situated near Letlhakane, has become world-famous for large diamond discoveries such as Lesedi la Rona and Sewelo. The planned underground mine represents Karowe’s future and is expected to yield additional revenues of $4 billion (P52.4 billion) up to at least 2040.
Last month, Lucara said it now expects the underground project to cost 25% more, rising to $683 million (P8.9 billion) and production from the new ore to be accessed two years later than originally forecast.
The Canadian company said several technical challenges were behind the updated capital costs and production timelines, which had also impacted revenue forecasts over the period. As at June 30, 2023, Lucara had spent $264.5 million (about P3.5 billion) on the underground project, with capital commitments of $369.7 million (P4.9 billion) having been made. The remaining forecast to complete construction of the project as of June 30, 2023, is $419 million (P5.5 billion) including an unallocated contingency of $49.3 million (P646.3 million). Lucara expects its revenues this year to reach $230 million (P3 billion).
