JOHANNESBURG (miningweekly.com) – The Botswana Court of Appeals on Thursday upheld the previous ruling by the Botswana High Court, dismissing the claim against Lucara Diamond’s wholly owned subsidiary African Diamonds by two of its former directors, who were claiming entitlement to a 3% royalty on production from the Karowe diamond project, in Botswana.
The claim was initially heard in the High Court in June 2011, with the court dismissing with costs the former directors’ claims against African Diamonds.
The plaintiffs then appealed the judgment, with the appeal having been heard in Botswana by a panel of international judges on January 21. The judgment was handed down on Thursday with costs again awarded against the plaintiffs.
The Karowe mine is located in north-central Botswana and is part of the Orapa/Letlhakane kimberlite district – one of the world’s most prolific diamond-producing areas. The project, which was being ramped up to full production, had an indicated resource of 51-million tons, containing an estimated 8.2-million carats of diamonds.