Sunday, May 29, 2022

Karowe stones set to join Botswana diamond glitter

The Lucara Diamond Company is confident that its wholly-owned Karowe Mine’s diamonds produced from full scale operations will be sold through the Botswana sales office.

Chief Executive Officer William Lamb said the relatively new Canadian diamond company listed in Botswana is the first sustainable diamond production outside of Debswana.

He said the mining company is focused on growth with southern Africa as the primary target area.
Speaking at the launch of Karowe mine on Thursday in Gaborone, Lamb highlighted that Karowe mine key milestones date as far back as 2008 when the mining license was granted followed by Lucara acquiring seventy percent share interest.

He said in 2010, Lucara later acquired hundred percent interests and later on the construction of the mine took place in 2010. Lamb also highlighted that the following year in 2011 Lucara listed on Botswana Stock Exchange (BSE) while the construction and plant commissioning took place this year.

“We will continue to assess projects in the Southern African region for earn-in or acquisition opportunities. Our target market is all diamond dealers licensed to purchase rough in Botswana, some of whom will be local cutting factories,” said Lamb.

He stated that there are three types of auctions that are currently being used for the allocation of diamonds from various producers and market traders. Lamb said they include first-price sealed bid auction which is most common, second-price sealed bid auction and also ascending bid auction.

“Karowe shall invite registered and approved customers to participate in the auction, therefore the customer shall be invited to inspect the rough diamonds to be offered for sale at auction. Viewing shall take place at Karowe’s premises at a specifically designated time slot in order to allow as many companies as logistically possible to view and potentially bid,” he explained.

Boteti Mining Pty Ltd Managing Director Ribson Gabonowe highlighted that Lucara Diamond Corp owns hundred percent of Boteti Mining Company. Gabonowe said Lucara online auction platform was purpose built by IDEX and added that it was developed after comprehensive examination and study of existing platforms. He stated that it is incorporating best auction theory logic, tailored for Lucara.

“This is a significant milestone for Lucara. The first diamond production from Karowe edges us closer to being part of an exclusive group of diamond producers,” he said.

RELATED STORIES

Read this week's paper