Lucara Diamond Corp.’s latest feasibility study for the Karowe mine in Botswana highlights the impact of softening demand on high-value rough diamonds, with prices declining across key production zones over the past two years.

According to the study conducted in September, rough diamonds from the EM/PK(s) open-pit region of the south lobe were valued at $695 per carat, marking a 16% decline from the $828 per carat recorded in Lucara’s June 2023 feasibility assessment. The M/PK(s) portion experienced a sharper correction, with values falling 26%, from $707 per carat to $520 per carat.

In response to the current pricing environment, Lucara has removed the north and center lobes from the revised study, stating that these areas are no longer economically viable under prevailing market conditions. The two lobes together accounted for approximately 170,000 carats, as outlined in the 2023 study.

The feasibility update also shows a notable reduction in underground reserves at Karowe. Total reserves have declined 30%, from 5.2 million carats in 2023 to 3.7 million carats, reflecting a strategic shift toward prioritising higher-margin mining zones.

Lucara indicated that the revised reserve estimate is largely the result of focusing operations on more profitable areas, as lower rough prices continue to influence mine planning and long-term development strategies.