RAPAPORT… The Botswana government has allowed Lucara Diamond Corp. to mine at the Karowe deposit until 2046, enabling it to pursue its plans to launch underground operations.
The country’s minister of mineral resources, green technology and energy security approved Lucara’s application for a 25-year renewal of its mining license, the company reported Monday. The new permit is effective immediately.
Canada-based Lucara is in the process of expanding into underground mining at Karowe at a cost of around $514 million, forecasting that the move will extend the site’s life span to at least 2036 from its current estimate of 2026.
After delaying much of the construction work last year due to Covid-19, Lucara is exploring options for debt financing, which it anticipates will be in place by the second half of 2021. The entire expansion program will take around five years, with Lucara expecting to access the first ore in 2026.
Image: The Karowe processing plant. (Lucara Diamond Corp.)
Lucara Receives 25-Year Karowe License
The Bottom Line
- Botswana government approves Lucara's 25-year mining license renewal for Karowe, effective immediately.
- Lucara plans a $514 million underground expansion to extend Karowe's mine life to at least 2036 from 2026.
- Lucara is seeking debt financing to support the five-year expansion, aiming to start underground ore extraction in 2026.
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