Going deeper for Botswana’s diamonds

“Diamonds are forever,” the saying goes. For Botswana, they have also been transformative.

Since gaining independence in 1966, the country has used its diamond wealth to help build one of Africa’s more prosperous economies, underpinned by a reputation for careful management of its natural resources.

Among the country's most remarkable diamond assets is the Karowe mine, operated by Lucara Botswana Pty Ltd, renowned for recovering exceptionally large, high-value diamonds.

Now, the mine is preparing to go deeper.

From open-pit to underground

Karowe is transitioning from open-pit to underground mining, an investment intended to extend the mine’s life beyond 2038. Making that transition safely, efficiently and sustainably requires substantial new equipment – and substantial financing.

Lucara has ordered a 15-unit fleet of underground drills and loaders from Sandvik, together with rock tools, spare parts and related services. The deal is complemented by financing from Sandvik Financial Services (SFS), backed by an EKN guarantee.

For Sandvik, the transaction illustrates the increasingly important role that financing can play alongside technology and aftermarket support.

“By combining Sandvik’s mining expertise with our financial services capabilities and EKN’s export credit support, we were able to structure a competitive financing solution around Lucara’s investment requirements,” says Tony Clarke, SFS EMEA Manager at Sandvik.

For EKN Senior Underwriter Henrik Ljunggren, customer financing can be an important competitive differentiator as global demand for minerals and metals drives investment.

“Export financing has grown in importance as more and more suppliers from different countries are entering the rapidly growing market for mineral and metal exploration. The ability to offer customer financing backed by ECA guarantees is a strong USP for OEM vendors.”

For EKN, the transaction required close cooperation between the parties to establish an appropriate structure and assess the project’s potential.

“Bringing a challenging transaction to a close through constructive dialogue is always satisfying,” says Ljunggren. “In this case, the parties worked closely with EKN to find the right structure, gather the necessary financial information and assess the potential of further excavation.”

A fleet fit for the next chapter

The Sandvik order comprises five DD321 development drills, four Toro® LH517i loaders, two Toro® LH621i loaders, two DD422i development drills, one DS422i cable bolter and one DU311 long-hole drill, supported by an aftermarket package designed to maximise availability and productivity throughout the fleet’s operating life.

Sandvik’s digital and automated technologies can also help make deeper mining safer and more efficient, with potential benefits including improved productivity.
The timing of the investment comes against a challenging backdrop for the global diamond industry, with some players facing increasing competition from synthetic industrial diamonds. But Karowe occupies a rather different part of the diamond story.

Its reputation rests on something that cannot simply be manufactured to order: extraordinarily large and rare natural stones.

The mine has an exceptional record of recovering such diamonds, and each major discovery can capture attention far beyond the mining industry. That gives Karowe an unusual place in the global diamond market – where geology, technology and finance ultimately converge on the possibility of finding something genuinely extraordinary.

“We’re confident in Botswana,” Clarke says. “Large gemstones like these cannot be replicated in a lab. There will always be buyers for exceptional stones, as auctions have shown.”

For Lucara, the immediate focus is less on the glamour surrounding the diamonds than on creating the infrastructure needed to recover them safely and efficiently.

Access to competitive financing

For Sandvik, the partnership with EKN goes beyond financing a single equipment order. It is about supporting a major customer investment in a market where the scale, duration and risk profile of mining projects can make access to competitive financing an important part of the proposition.

For EKN, it is an example of how export credit support can help Swedish companies compete in major international investments – by sharing risk, helping structure financing and bringing financial, legal and sustainability expertise to the table.

Clarke values that broader partnership.

“We’ve had a long partnership in which both parties understand each other. We are good at finding solutions together. They are very hands-on and offer support through their legal and sustainability teams.”

At Karowe, the prize may be hidden deep beneath the Botswana soil. But unlocking it requires something considerably more prosaic than a lucky strike: technology, investment, financing and partners willing to share the risk.

Note: The Karowe Diamond Mine, located in north-central Botswana and owned 100% by Lucara Diamond Corp., has been subject to multiple feasibility studies and technical reports, most recently the 2025 Feasibility Study Technical Report prepared by JDS Energy & Mining Inc, effective September 30, 2025. Sustainability considerations at Karowe encompass environmental, social, and governance (ESG) aspects aligned with international best practices. Lucara operates the mine in accordance with the Responsible Jewellery Council, complies with the Kimberley Process, and has adopted IFC Performance Standards and the World Bank Group’s Environmental, Health & Safety Guidelines for Mining (2007).