In the ongoing development of its Karowe Underground Project (UGP) in Botswana, diamond miner Lucara Diamond Corporation has terminated its engineering, procurement and construction management (EPCM) contract with mining engineering company JDS Energy & Mining in favour of a transition to owner-managed operations.

Effective March 31, the termination of JDS’s EPCM contract will see JDS completing specific engineering components of the Karowe UGP under a Master Service Agreement, while all site-based contracts and activities will transition to being managed by Lucara.

“We are confident that this strategic shift in project management will allow us to better leverage our team’s deep understanding of the Karowe mine and its unique characteristics,” says Lucara president and CEO William Lamb.

Lucara reports that this decision aligns with its commitment to optimising project execution and improving shareholder value, by providing 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 the leveraging of Lucara’s extensive in-house expertise and knowledge of the Karowe mine.

By taking direct control of site-based activities, he says Lucara is positioning the company to respond more rapidly to project needs and challenges, as well as enabling Lucara to drive the UGP forward with greater efficiency and precision, “ultimately delivering enhanced value to our shareholders and stakeholders”.

Openpit operations at the Karowe mine, which started in 2012, will continue until 2026, after which mining will shift predominantly to underground operations that are expected to sustain diamond mining until 2040.

A mining licence to 2046 for Karowe has been approved by the Botswana government.

In terms of UGP development progress, Lucara continues to make significant progress, with the production shaft having reached over 720 m below surface and the ventilation shaft reaching over 680 m.

Substantial advancements have been made on the production and personnel winder building, with the majority of the required surface infrastructure already in place, including the installation of permanent bulk air coolers and other critical components.