Lucara Diamond Corp. has unveiled a major restructuring in the management of its Karowe underground project (UGP) in Botswana, marking a pivotal shift aimed at optimizing operations and enhancing productivity. The company has terminated its Engineering, Procurement, and Construction Management (EPCM) contract with JDS Energy & Mining Inc., transitioning to a new owner-managed approach for site-based activities.
A New Management Structure for Efficiency
Under the revised strategy, Lucara has entered into a Master Service Agreement (MSA) with JDS to complete specific engineering components of the project while taking direct control of all site-based contracts and activities. This transition is expected to provide several key benefits:
- Enhanced cost control and operational efficiency
- Greater flexibility in decision-making and resource allocation
- Direct oversight of critical project milestones and timelines
- Leveraging Lucara’s in-house expertise and deep knowledge of the Karowe mine
Lucara’s Karowe underground project is a crucial development aimed at extending the life of the mine and securing its position as a leading producer of large, high-quality diamonds.
Progress on the Underground Project
The UGP has made significant advancements, with the production shaft reaching over 720 meters below surface and the ventilation shaft extending beyond 680 meters. Additionally, substantial progress has been achieved on the production man and materials winder building, with most of the required surface infrastructure already in place. This includes the installation of permanent bulk air coolers and other critical components, ensuring the project remains on track for success.
CEO’s Perspective on the Transition
Lucara’s President and CEO, William Lamb, emphasized the importance of this strategic shift, stating:
“We are confident that this transition in project management will allow us to better leverage our 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. This approach will enable us to drive the UGP forward with greater efficiency and precision, ultimately delivering enhanced value to our shareholders and stakeholders.”
Future Outlook
Lucara remains committed to the successful development of the Karowe underground project, ensuring its long-term sustainability and profitability. The company’s new management approach is expected to streamline operations, improve efficiency, and reinforce its position in the global diamond industry.
As the project progresses, Lucara’s strategic shift signals a new era of operational excellence, reinforcing its commitment to innovation, efficiency, and shareholder value.
