In preparation for the transition to underground mining, the company is engaging in an operational readiness programme that ensures employees are equipped with the requisite skills for operating below ground. These employees will be sourced from existing operations at Karowe, as well as from Letlhakane and greater Botswana. Since achieving production shaft last blast in August, UMS has advanced to the shaft equipping phase with steelwork already arriving onsite. “Venturing underground opens avenues to unchartered opportunities – opportunities for bigger, better and more colourful diamonds,” says Lamb. Importance of the Karowe Mine The world-leading producer of exceptionally large, high-quality Type IIA diamonds, Karowe has produced most of the largest diamonds in recorded history, including nine stones over 1 000 carats each. Most notably, Lucara recovered the epic 2 488-carat Motswedi diamond in 2024 and the 1 109-carat Lesedi La Ronain 2015, which was the first stone over 1 000 carats recovered in the last 100 years. Over 80% of Karowe’s revenue comes from Specials, or diamonds more than 10.8 carats. The Karowe Mine’s EM(P)KS ore type, which is rich in large, high-value Type IIA diamonds found in the South Lobe at depth, is the focus of the mine’s underground project. By accessing this ore, the mine will be able to maximise economic returns by recovering the most valuable material where most of the company’s historic diamonds have been recovered. Although the market for natural diamonds is depressed, Lucara’s high value contribution targeting the high-end market remains solid. “Most diamond mines will never see a 100 carats stone in their entire history. By the end of the second quarter of 2025 alone, Karowe recovered more than 20 such stones,” says Lamb. The mine also produces highly sought- after coloured stones in a variety of hues – blue, yellow, brown and pink – with these gems selling at a premium price. Lucara has a sales agreement with Belgian diamond manufacturer HB Antwerp, where Lucara supplies qualifying rough diamonds from the Karowe Diamond Mine to HB for polishing and sales. Discussing its relationship with HB, Lamb explains that in the current depressed market, the miner benefits from this partnership as it offers a better return when the larger stones are sold based on a polished price. According to Lamb, apart from the hundreds of employees that work on the mine, more than
15 000 - 20 000 people benefit from the salaries paid.” The Karowe Diamond Mine currently employs about 1 800 people, a number expected to increase with underground operations. More than 95% of employees working on the underground project are Botswana nationals. Impact of lab-grown diamonds on the market The rise of lab-grown diamonds continues to impact the sale and appetite for natural diamonds negatively, with Botswana, the largest producer of diamonds by value globally, being particularly hard hit. This decline in demand for natural diamonds heavily impacts Botswana’s economy, drastically reducing export revenues and causing economic contraction. According to Lamb, the market has been flooded with lab-grown diamonds, resulting in oversupply and leading, in most instances, to a loss of demand for the synthetic products. “Lab-grown diamonds (LGD) do not hold their value in the same way as natural diamonds and they are susceptible to significantly greater depreciation after purchase. For instance, a one carat lab-grown stone that originally cost between $8 000 and $10 000 now typically retails for only 5-10% of its original price when LGDs started to appear on the market in 2015.” Lamb believes that interest in lab-grown diamonds is temporary and expects that consumers will soon follow in the footsteps of Chinese consumers who staunchly favour mined diamonds. “The Chinese market, where we see green shoots and a return to natural diamond purchasing, shows a strong preference for natural diamonds over lab-grown alternatives, viewing them as more prestigious, valuable, and luxurious,” he concludes. n
NOVEMBER2025 | www.modernminingmagazine.co.za MODERN MINING 15
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