Sandvik is expanding its underground mining business after securing an order from Lucara Botswana to supply a 15-unit equipment fleet for the Karowe diamond mine. The agreement combines drilling and loading equipment with financing, aftermarket services and digital monitoring, highlighting how mining equipment companies are increasingly competing through integrated lifecycle solutions rather than machinery alone. The project also supports Karowe’s transition from open-pit to underground operations, potentially extending the mine’s productive life beyond 2038.

Sandvik Secures 15-Unit Underground Fleet Order

The order, booked during the second quarter of 2026, covers a broad range of underground mining equipment, including five DD321 development drills, four Toro LH517i loaders, two Toro LH621i loaders, two DD422i development drills, a DS422i cable bolter and a DU311 longhole drill. Deliveries are already underway and are expected to continue through the fourth quarter.

The breadth of the order is strategically important for Sandvik because it demonstrates its ability to supply multiple stages of underground mining operations through a single relationship. Rather than relying solely on equipment sales, Sandvik is also providing rock tools, aftermarket support and digital services designed to improve fleet availability and productivity.

Karowe Transition Creates Long-Term Equipment Demand

The equipment will support Lucara Botswana’s ongoing transition of the Karowe diamond mine from open-pit to underground mining. The Karowe Underground Project is intended to extend the mine’s operating life beyond 2038, creating a potentially lengthy demand cycle for underground machinery, replacement parts and maintenance services.

Karowe has attracted global attention because of its unusually large diamond discoveries, including its tenth diamond weighing more than 1,000 carats earlier in 2026. For Sandvik, however, the broader significance lies in the mine’s transformation into a long-duration underground operation requiring specialized equipment and continued technical support.

Financing and Digital Services Add Strategic Value

The agreement also includes a financing package arranged through Sandvik Financial Services and supported by a guarantee from the Swedish Export Credit Agency. By helping facilitate Lucara’s equipment investment, the financing structure could make the transition to underground production easier to execute while strengthening Sandvik’s position as a long-term partner.

Sandvik is also supplying My Sandvik and Remote Monitoring Service, allowing the company to provide digital oversight alongside physical equipment. These capabilities are increasingly important in underground mining, where equipment availability, maintenance efficiency and productivity can materially affect operating economics.

The strategy potentially creates recurring opportunities beyond the initial equipment order. Once a fleet is deployed, demand for parts, rock tools, maintenance and digital services can continue throughout its operational life.

Market Outlook

Sandvik’s Karowe agreement illustrates the growing importance of integrated mining solutions as operators invest in extending the life of existing assets and moving toward more complex underground production. For Sandvik, continued success will depend on converting equipment wins into durable aftermarket and digital-service revenue while maintaining exposure to mining companies’ capital spending cycles. The Karowe project could provide a long-term platform for that strategy, particularly as Lucara advances underground development and Sandvik continues pursuing similar international opportunities.