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Strengthening its role in one of Botswana’s most significant mining projects, Sandvik has secured a major equipment and financing agreement with Lucara Botswana for the underground expansion of the Karowe diamond mine. The multinational engineering company will supply Lucara Botswana, a subsidiary of TSX-listed Lucara Diamond Corp, with a 15 unit fleet of underground drills and loaders, alongside parts, rock tools and related services.
The order comprises five Sandvik DD321 development drills, four Toro LH517i loaders, two Toro LH621i loaders, two Sandvik DD422i development drills, one Sandvik DS422i cable bolter and one Sandvik DU311 longhole drill. The package also includes aftermarket support designed to maximise equipment availability and productivity throughout the fleet’s operating life. Sandvik said deliveries were already under way following the order’s booking in the second quarter and will continue through the fourth quarter of this year.
For Lucara, the agreement forms part of the wider transition of Karowe from open-pit to underground mining, a development intended to extend the life of the operation beyond 2038. Lucara Corporate Finance Director Benjamin Wang said the company was looking for a partner capable of supporting the project throughout its lifecycle. “Sandvik’s combination of leading underground equipment, aftermarket support and financing capability made it a compelling solution for our operation. This investment supports our strategy of building a safe and productive underground mine,” said Wang.
The deal extends beyond the initial equipment purchase. Sandvik will provide services, rock tools and digital solutions including its My Sandvik and Remote Monitoring Service offerings. These systems use cloud technology, artificial intelligence and telematics to monitor equipment health, improve performance and support a shift towards proactive maintenance. Sandvik Mining Botswana Territory Manager Floors Foord said the agreement demonstrates the company’s broader approach to supporting mining customers.
Foord noted, “This order demonstrates the breadth of our offering and our ability to support customers in Botswana with an integrated solution that extends beyond the equipment. By bringing together expertise from across Sandvik, we can support Lucara throughout the equipment lifecycle while contributing to the long-term success of its underground operation.” Financing has been built into the transaction through Sandvik group subsidiary Sandvik Financial Services, with an export credit guarantee from the Swedish Export Credit Agency.
SFS Europe, Middle East and Africa Manager Tony Clark said the structure enabled the companies to develop financing tailored to Lucara’s investment requirements. “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. It demonstrates how financing can complement our equipment and aftermarket offering and help customers advance significant long-term mining investments,” said Clark.
The agreement highlights the increasingly integrated nature of major mining capital investments, where equipment supply, technology, maintenance and financing are being packaged together to support large-scale projects. Karowe investment comes as the mine moves deeper underground after establishing a global reputation for recovering exceptional diamonds, including its tenth stone weighing more than 1,000 carats, announced earlier this year. With the underground project targeting mine life beyond 2038, the Sandvik agreement represents another significant step in Lucara’s effort to build the equipment, technology and financial infrastructure required for Karowe’s next phase of production.
