Lucara Receives 25-Year Karowe License

‘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.’

Source – Rapaport