Development of Lucara Diamond's AK6 diamond project in Botswana has passed the halfway point, with execution at 64%, and is on schedule and on budget, the company reports.

The project received a shipment of structural steel in mid-June and construction of a power line is expected to be complete by mid-July. Recruitment of Boteti operational staff is progressing well and all senior positions have been filled with Batswana.

"We’re on the home stretch now. It is exciting to see the project take shape… AK6 will be the only new diamond mine coming on stream in the near future and will soon be contributing high quality diamonds to a strengthening diamond market," said Lucara CEO William Lamb.

The mine is scheduled to start operating by the end of 2011 and reach full production at the start of 2012. In its first year of operation, the mine is expected to yield over 400,000 carats of diamonds.