Lucara estimates that its Karowe mine contributes approximately 0.3% to 0.4% of global diamond production. The mine has made headlines recently with the discovery of a 2,492-carat diamond, marking the second-largest find ever. This diamond, uncovered in August at the Karowe mine in northeastern Botswana, is the largest newly discovered diamond seen in modern times.
The largest diamond ever, the Cullinan, was discovered in 1905 near Pretoria, South Africa, when mine superintendent Frederick Wells noticed a reflection of light while inspecting the Premier Mine. Climbing a ladder, he used his penknife to extract what appeared to be a large crystal shard. The Cullinan, weighing 3,106 carats, was initially met with disbelief by mine clerks, one of whom even threw it out of the window.
Lucara Diamond CEO William Lamb emphasized that the Karowe diamond’s discovery was made possible through advanced X-ray technology developed in partnership with Norwegian company TOMRA. He described the find as “fantastically significant” for Botswana, especially as the diamond industry faces challenges due to the rise of lab-created diamonds. Lamb noted that the industry is at a “low point” and stressed the importance of exposure to natural diamonds. Sales at Debswana Diamond Company, a joint venture between the Botswana government and De Beers, plummeted by 49% in the first half of this year amid a global market slump.
Lamb suggested that Botswana has effectively marketed itself as a tourist destination and that a campaign to promote its mining industry could help mitigate the decline. The Karowe mine, fully owned by Lucara and operational since 2012, has not seen a new diamond mine opened in Botswana since then. Lamb believes this discovery could attract new foreign investment.
The mine’s unique geological location, on an extinct volcano, allows it to produce large stones. Karowe is projected to have between 12 and 15 years of resources remaining. Lamb pointed out that while lab-created stones depreciate quickly, natural diamonds retain their value, making them a safer investment. He acknowledged Botswana’s vulnerability to the influx of inexpensive synthetic diamonds, noting that De Beers announced plans in May to cease synthetic diamond production and focus on natural diamonds.
The Cullinan diamond, after its discovery, was sent to Britain by registered post, with a decoy stone sent separately to mislead the public. It was presented to King Edward VII in 1907 and later cut into smaller stones, many of which are now part of the Crown Jewels. Lamb is currently in discussions with the Botswana government regarding the future of the newly discovered diamond, including the possibility of putting it on public display.
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