Lucara Diamond Corp has announced a strategic change in the management of its Karowe underground project (UGP) in Botswana, terminating its engineering, procurement and construction management (EPCM) contract with JDS Energy & Mining Inc (JDS) for UGP development, while simultaneously entering into a Master Service Agreement (MSA) with JDS to complete specific engineering components of the project.
Outside of the specific engineering components of the project, all site-based contracts and activities will transition to owner-managed operations.
This decision aligns with Lucara’s commitment to optimising project execution and maximising shareholder value, the company says, with the shift to owner-managed operations for site-based activities expected to provide several benefits, including:
- Enhanced cost control and operational efficiency;
- Improved flexibility in decision making and resource allocation;
- Direct oversight of critical project milestones and timelines; and
- Leveraging Lucara’s extensive in-house expertise and knowledge of the Karowe mine
Lucara stated: “The UGP continues to make significant progress. The production shaft has now reached over 720 m below surface and the ventilation shaft has now reached over 680 m below surface. Substantial advancements have been made on the production man and materials winder building, with the majority of the required surface infrastructure already in place. This includes the installation of permanent bulk air coolers and other critical components, positioning the project for continued success as it moves forward under the new management structure.”
William Lamb, President and CEO of Lucara, said the company was confident that the strategic shift in project management will allow Lucara to better leverage its team’s deep understanding of the Karowe mine and its unique characteristics.
“By taking direct control of site-based activities, we are positioning ourselves to respond more rapidly to project needs and challenges,” he added. “This approach will enable us to drive the UGP forward with greater efficiency and precision, ultimately delivering enhanced value to our shareholders and stakeholders.”
The UGP is expected to extend the life of mine at Karowe to 2040, with operations commencing in the March quarter of 2028.
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