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It is an exceptionally large diamond – the second largest in the world – that barely fits in the palm of a hand. The Canadian mining company Lucara announced on Wednesday, August 21, that it had found a 2,492-carat diamond in the Karowe mine in northeast Botswana, Africa’s leading diamond producer. This half-kilogram gemstone is “one of the largest rough diamonds ever discovered”, emphasized Lucara in a press release.
According to the Botswana government and several experts, it is the second largest diamond ever found on Earth. In terms of carats, it is not far behind the largest known diamond, the “Cullinan”, which weighs over 3,100 carats and was uncovered in South Africa in 1905.
$40 million
“We are thrilled to have recovered this extraordinary diamond,” said Lucara CEO William Lamb in the statement, which did not provide details on the value of the find or its quality. The Financial Times, citing sources close to Lucara, reported that the stone could be valued at over $40 million.
Lucara Botswana Managing Director Naseem Lahri presented the stone to the country’s President, Mokgweetsi Masisi, on Thursday afternoon. “I was informed that this is the largest diamond discovered in Botswana to date and the second largest in the world,” he stated while congratulating the company. “With a diamond of this size, you could build roads,” the president added. Lucara mentioned that it pays the Botswana government a royalty of 10 percent on the gross sales value of diamonds produced in Karowe.
“The historic discovery of this rough diamond, the most significant in 120 years, is thrilling,” says Tobias Kormind, CEO of 77 Diamonds, Europe’s largest online jeweler. He noted that the large, largely translucent stone is “the largest rough diamond unearthed since the discovery of the Cullinan diamond,” which was cut into several pieces, with the largest set in the British Crown Jewels.
This discovery is “largely attributed to recent technology”, specifically X-ray detection developed by Lucara and utilized since 2017, “which allows larger gemstones to be extracted from the ground without breaking them,” noted the expert. “So it is likely that we will see more of these emerge,” he added.
Major diamond-producing country
The Karowe mine began production in 2012, and since then Lucara has sold 216 diamonds worth over $1 million and 11 diamonds valued at over $10 million, according to the company. Botswana is among the world’s largest producers of diamonds by volume and the largest by value, according to the IMF. Diamonds are a primary source of income for the country, accounting for 30% of its GDP and 80% of its exports.
As noted by Lucara in its press release, diamond revenues provide Botswana with “considerable socio-economic benefits”, funding “essential areas such as education and health” as well as the infrastructure of this country with a population of 2.6 million.
Prior to the discovery announced on Thursday, the largest diamond found in Botswana was a 1,758-carat stone also mined by Lucara in 2019, named Sewelo, which means “rare discovery” in the Tswana language. As large as a tennis ball, it was purchased by Louis Vuitton, the flagship brand of luxury giant LVMH, for an undisclosed price.
Lucara also recalls in its press release that it previously found a 1,174-carat diamond in Botswana in 2021, using the same X-ray technology that was employed to identify this exceptionally large rough diamond this week.
Discovery of a 2,492-Carat Diamond by Lucara: A New Era in Diamond Mining
On August 21, Canadian mining company Lucara Diamond Corporation announced the remarkable discovery of a 2,492-carat rough diamond in its Karowe mine located in northeastern Botswana. This diamond, weighing half a kilogram, is hailed as one of the largest rough diamonds ever unearthed, valuing approximately $40 million. With dimensions that barely fit into one hand, it is recognized as the second largest diamond in history, trailing only the famed Cullinan diamond, which weighed over 3,100 carats and was discovered in South Africa in 1905.
Details of the Discovery
The Karowe mine has become a focal point for significant diamond finds since it began production in 2012. Lucara has a proven track record, having previously discovered diamonds weighing over 1,000 carats, but this latest find surpasses all expectations. In a press statement, Lucara’s CEO, William Lamb, expressed his excitement, stating, “We are delighted to have recovered this extraordinary diamond.” The Financial Times indicated that the stone could potentially surpass $40 million in value, though specific quality assessments are pending.
The Diamond’s Impact on Botswana
Considered one of Africa’s top diamond-producing nations, Botswana relies heavily on diamond revenues. Diamonds account for about 30% of the country’s GDP and around 80% of its exports. The discovery of this diamond not only boosts the local economy but also has larger implications for infrastructure, education, and healthcare in the region.
$40 Million Worth of Opportunity
Botswana’s President, Mokgweetsi Masisi, expressed pride in this discovery when it was presented to him by Lucara Botswana’s Managing Director, Naseem Lahri. The president remarked, “With a diamond of this size, you can build roads.” Under the current royalty structure, Lucara pays the Botswana government 10% of the gross sales value of the diamonds mined at Karowe.
Technological Innovations in Diamond Mining
The successful recovery of the diamond has been attributed to advanced technology, specifically X-ray detection technology developed by Lucara. This technology, in use since 2017, allows miners to extract larger gemstones without compromising their integrity. Tobias Kormind, CEO of 77 Diamonds, noted, “The historic discovery of this rough diamond, the most important in 120 years, is exciting.” This innovation signifies a potential shift in diamond extraction methods, paving the way for more significant discoveries in the future.
A Brief History of Lucara Diamonds
Lucara Diamond Corporation has garnered a reputation for uncovering some of the largest and most valuable diamonds in history:
| Year | Diamond Name | Carats | Notes |
|---|---|---|---|
| 2015 | Lesotho Legend | 910 | One of the largest diamonds ever discovered. |
| 2019 | Sewelo | 1,758 | Purchased by Louis Vuitton. |
| 2021 | 1,174-carat Diamond | 1,174 | Utilized X-ray technology for recovery. |
| 2023 | Unnamed Diamond | 2,492 | Second largest diamond in the world. |
The Future of Diamond Exploration
The recurring theme of significant diamond discoveries in Botswana highlights the country’s potential in becoming a global leader in diamond mining. With advancements in technology and a commitment to sustainable practices, Lucara and other companies are encouraged to continue exploring the depths of this region. The combination of rich natural resources and innovative mining techniques positions Botswana favorably in the global market.
Case Studies: Economic Benefits of Diamond Mining in Botswana
To illustrate the socio-economic impact of diamonds in Botswana, here are a few case studies:
- Education: Funds generated from diamond mining have been used to build schools and enhance the quality of education in rural areas.
- Healthcare: The revenues assist in improving healthcare facilities and services in remote regions of Botswana.
- Infrastructure: Diamond revenues have facilitated the development of roads, transportation systems, and utilities, significantly improving the quality of life for citizens.
First-Hand Experience
Local communities are witnessing direct benefits from diamond mining. A resident of Lethlakeng, a village located near the Karowe mine, shared, “We see changes in our lives, from better schools to better roads. Diamonds have helped us.” This sentiment echoes across various communities associated with diamond mining operations in Botswana, showcasing how diamond mining can transform lives substantially.
