Namibia Diamond Mine Plans to Resume Production with Investment of Up to US$50 Million

en.Wedoany.com Reported - On October 7, Dutch private equity investment firm Kenzoll Capital entered into a partnership with Namibian company MSF Commercials to restart the Sperrgebiet diamond mine near Lüderitz in southern Namibia, formerly known as the Elizabeth Bay diamond mine. The mine has been largely inactive for the past 8 years. The partners plan to first resume diamond mining and, after obtaining relevant regulatory approvals, expand investment, with cumulative investment expected to reach up to US$50 million, while also conducting exploration and development of heavy mineral sands and critical metals.

The mining license for the Sperrgebiet diamond mine covers approximately 245,364 hectares within Namibia's southern diamond restricted mining area, with reported onshore diamond resources of approximately 6.3 million carats and offshore diamond resources of approximately 4.2 million carats, totaling approximately 10.5 million carats. The mining area holds one of Namibia's earliest batches of diamond mining licenses. In addition to the existing diamond resources, the partnership also plans to investigate heavy mineral sands and critical metal resources within the license area that have not previously undergone systematic exploration.

The mine was originally operated by a company under De Beers. In 2019, De Beers initiated the sale process for the Elizabeth Bay mine, and the transaction was completed in 2020, with the acquiring consortium including Lewcor Group as the majority interest holder and MSF Commercials as the minority interest holder. Kenzoll Capital is participating in the mine restart through its partnership with MSF Commercials. The two parties have not yet disclosed the new equity ratios, mine operation and management arrangements, or specific fund settlement terms.

Kenzoll Capital has previously invested more than US$10 million in Namibia. Its Chief Executive Officer Corné Melissen confirmed that the new partnership will first target the long-dormant diamond business and develop other mineral resources in subsequent phases. The proposed expanded investment remains subject to obtaining relevant regulatory approvals. The partners have not yet announced the mine restart date, planned annual production, scope of equipment rehabilitation, or the exploration timetable for new mineral types.

Conan Mlunga, Director of Sperrgebiet Diamond Mine, confirmed that the project will combine Kenzoll Capital's investment funds with MSF Commercials' local business resources in Namibia to carry out the resumption of production.