The underground expansion of the Karowe mine in Botswana will cost Vancouver-based Lucara Diamond up to $105 million in 2023.
The primary focus will be on activities that are related to shaft sinking. It will also focus on bulk air cooler construction, contract tendering for underground development, as well as the purchases of underground equipment. This is according to the company’s operating guidance for 2023.
A review of the current budget as well as the program schedule has also been initiated by Lucara. It is said that it will be concluded in the first quarter of the coming year.
Karowe mine underground expansion projected to cost
Lucara provided updates that the projected capital cost for the underground expansion rose from $534 million to $547 million. The updates were provided in August 2022. This was in order to reflect expected price changes following the execution of the main sink contract
The Karowe mine’s lifespan will be extended by 13 years. This is thanks to the underground expansion project.
For the coming year, Lucara has set a revenue target of $200 million to $230 million. It also has a sales guidance of 385 000 to 415 000 CT.
This is comparable to the updated revenue guidance of $195 million to $225 million. It can also be compared to the 2022 sales guidance of 300 000 to 340, 000 CT.
According to the 2023 forecast, 52% of the recovered carats will come from the higher-value units in the Karowe mine’s south lobe. It is also said that the remaining 48% will come from the central lobe.
The assumptions for carats recovered and sold, along with the number of tons processed, are in line with the performance seen in recent years.
