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Canada-headquartered Lucara Diamonds has terminated its engineering, procurement, and construction management contract with JDS Energy & Mining (JDS), effective March 31, as it transitions to owner-managed operations at the Karowe underground expansion project (UGP) in Botswana.

Announcing the shift on Monday, Lucara stated that it had entered into a master service agreement (MSA) with JDS to complete specific engineering components while all site-based contracts and activities move under its direct oversight.

The company expects the transition to enhance cost control, improve operational efficiency, and provide greater flexibility in decision-making. By taking direct management of critical project milestones, Lucara aims to leverage its in-house expertise to advance the UGP more effectively.

"The strategic shift in project management will allow us to better leverage our team's deep understanding of the Karowe mine and its unique characteristics. By taking direct control of site-based activities, we are positioning ourselves to respond more rapidly to project needs and challenges," said Lucara president and CEO William Lamb.

Lucara acknowledged JDS's contributions and said it looked forward to the firm's continued involvement under the MSA in specific engineering aspects.

The UGP is a key project for Lucara, aimed at extending the life of the Karowe mine. The project has made significant progress, with the production shaft now exceeding 720 m in depth and the ventilation shaft surpassing 680 m.

Further advancements have been made on the production man and materials winder building, while most of the required surface infrastructure, including bulk air coolers, is already in place.