Karowe mine production cut 23%

Staff Writer | Friday August 17, 2012 00:00

Karowe is the only independent diamond mine( outside Debswana stable) operating in Botswana following the closure of two other recently( Lerala and  BK11)

The sales forecast for the year was reduced from 300 000 ct to 230 000 ct, while the production guidance was also reduced from 300 000 ct to about 270 000 ct. Commenting on the company's second-quarter results, CEO William Lamb said the reduction in sales was mainly the result of plant production restrictions caused by insufficient water being recovered from the initially installed dewatering wells.

The mill was also processing highly weathered ore that required more water per ton treated than was originally expected. The miner said it was busy installing additional water wells for which permits had already been obtained, in an effort to optimise the water resource at the operation. Steps were also being taken to reduce water consumption at the plant for every ton of ore being processed.

'These modifications are anticipated to be complete by the end of the year and the plant is expected to run at its design capacity by the first quarter of 2013,' Lamb said in a statement. Compounding the water woes of the Karobe plant is the fact that ore fed through the plant in August and September would be taken from lower-grade stockpiles.

Further, the company said it expected operating costs for every ton of ore treated to increase from $20/t to $22.5/t by the fourth quarter. The company had rescheduled its production plan for the year, as it tries to balance the relationship between ore feed and water availability. It now expected to treat 1.02-million tons of ore yielding about 208 000 ct by the end of the year.

Production for the year is now expected to total about 270 000 ct.The mine plan called for waste stripping and stockpiling of lower-grade ore to access better grade ore and ensure sustainable operations into 2013. Lucara recorded a net loss of $7.6-million for the quarter ended June 30, and had $7.7-million cash in the bank.