https://www.miningweekly.com
Africa|Botswana|Diamonds|Flow|Mining|PROJECT|Underground|Flow|Operations
Africa|Botswana|Diamonds|Flow|Mining|PROJECT|Underground|Flow|Operations
africa|botswana|diamonds|flow-company|mining|project|underground|flow-industry-term|operations

Lucara secures $220m for Botswana diamond mine expansion

Lucara operates the Karowe mine, in Botswana.

Lucara operates the Karowe mine, in Botswana.

6th May 2021

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Canadian miner Lucara Diamond Corp has secured credit-approved commitments for senior debt facilities of up to $220-million to fund the underground expansion of its Karowe mine that will allow the operation to continue until at least 2040.

The facilities will include project financing of $170-million for the underground project, and working capital of $50-million for the ongoing operation of the Karowe openpit mine, in Botswana.

A syndicate of five mandated lead arrangers include ING Bank, Natixis, Societe Generale London Branch, Africa Finance Corporation and Afreximbank.

CEO Eira Thomas says credit commitments for the arrangement of more than $200-million senior debt facilities from five leading international institutions are a strong endorsement of the mining company’s expansion plans.

The Karowe underground expansion has an estimated capital cost of $514-million and a five-year development period. The balance of the development capital is expected to come from operating cash flow generated by openpit operations at Karowe during the development period.

The project has an after-tax net present value, at a 5% discount rate, of $718-million, with a payback of 2.8 years, for the combined openpit and underground mine.

Life-of-mine production (remaining openpit and underground) is estimated at 7.8-million carats.

The Karowe diamond mine is one of the world's highest margin diamond mines. In just over eight years of production, it has yielded four of the ten largest diamonds in recorded history, including the 1 758 ct Sewelô, the largest diamond recovered from Botswana, and the 1 109 Lesedi La Rona, which sold for $53-million.

Edited by Creamer Media Reporter

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.107 0.143s - 109pq - 2rq
Subscribe Now