- The technology will modernise existing diamond supply chain, drive efficiencies and ensure diamond provenance from mine to finger
The Canadian mining outfit with diamond assets in this country, Lucara Diamond Corp, is in the process of introducing new technology to improve sales of diamonds from its Karowe Diamond Mine.
Officially opened by President Ian Khama in 2012, Karowe Mine is situated in the Boteti sub-district and is one of Botswana’s diamond mines that contribute significantly to the country’s mineral revenues and economy.
Management of the company, which is listed on bourses in both Botswana and Canada, told shareholders this week that Lucara had acquired Clara Diamond Solutions Corp., a company with a secure digital sales platform, in order to improve sales of Karowe diamonds.
The new technology will match rough diamond production to specific polished manufacturing demand and allow buyers to source rough diamonds tailored to their specific demand.
The company’s CEO, William Lamb, stated that the Lucara intended to start using the new diamond sales platform in the coming months and expressed confidence that the technology would help expand Lucara’s customer base, allow engagements with new participants in the rough diamond supply chain, and result in higher realised prices for Karowe’s rough diamonds.
“It will also ensure stable, continuous cash flow that is no longer tied to a fixed sales cycle,” Lamb said.
He expressed confidence that the technology would help to unlock value for diamond producers and manufacturers alike. “The technology is expected to modernise the existing diamond supply chain, drive efficiencies and ensure diamond provenance from mine to finger,” said the CEO who added that the digital platform would also ensure transparency throughout the diamond sales process and value chain.
In its latest market update, Lucara stated that testing on the platform had demonstrated the potential to unlock more than 20% of value throughout the diamond pipeline and that this could benefit all participants in the sales process.
Lucara has indicated the new sales technology will benefit the long-term operations at both Karowe open pit mine and its envisaged underground operations.
Meanwhile, the company’s latest financial statements show that in 2018, Lucara’s open pit mine could process between 270,000 and 290,000 carats of diamonds and generate revenue of between P1.7 billion and P2 billion from the sales of Karowe diamonds.
Lucara’s open pit operations, which are scheduled to continue until 2026, are expected to be followed by underground operations which could end production in 2036, according to the company’s recent updates.