Lucara Diamond Corp announced a strategic change in the management of its Karowe Under-Ground Project (UGP) in Botswana. The Company has terminated its Engineering, Procurement and Construction Management contract with JDS Energy & Mining Inc for the development of the UGP, effective March 31, 2025. The Company has entered into a Master Service Agreement with JDS to complete specific engineering components of the project, while all site-based contracts and activities will transition to owner-managed operations.
This decision aligns with Lucara’s commitment to optimizing project execution and maximizing shareholder value. The shift to owner-managed operations for site-based activities is expected to provide several benefits, including,
1: Enhanced cost control and operational efficiency.
2: Improved flexibility in decision-making and resource allocation,
3: Direct oversight of critical project milestones and timelines. 4: Leveraging Lucara’s extensive in-house expertise and knowledge of the Karowe mine.
The UGP continues to make significant progress. The production shaft has now reached over 720 meters below surface and the ventilation shaft has now reached over 680 meters 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, commented on the transition: “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. 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.”
The Company appreciates the contributions made by JDS to date and looks forward to their continued involvement under the MSA in specific engineering aspects of the project. Lucara remains committed to the successful development of the UGP, which will extend the life of mine at Karowe and secure its position as a leading producer of large, high-quality diamonds.
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