Kenzoll Capital, a private equity firm based in Amsterdam, the Netherlands, has entered into a partnership with MSF Commercials to revive operations at the Sperrgebiet Diamond Mine in southern Namibia.
Previously known as the Elizabeth Bay diamond mine, the site has remained largely inactive for eight years.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The restart follows a period of significant decline in Namibia’s diamond exports.
The mine, situated near Lüderitz, contains an estimated total of 10.5 million carats of diamond resources, split between 6.3 million carats onshore and 4.2 million offshore.
The Sperrgebiet Diamond Mine’s licences extend across 245,364 hectares (ha) within the designated restricted mining area known as the Sperrgebiet.
Sperrgebiet Diamond Mine director Conan Mlunga said: “SDM [Sperrgebiet Diamond Mine] holds a strategic asset in a part of the country that requires investment. The entry of a significant investor in the form of Kenzoll to support the Namibian Government priorities is a sign of the attractiveness of Namibia as a mining jurisdiction.
“Their support of MSF and by extension SDM will combine international capital and local expertise to get the mine back up and running to build value beyond diamonds.”
Under the new partnership, investment in the mine is expected to total $50m.
Plans include exploration for and extraction of heavy mineral sands and critical metals on these acquired licences. These areas have not previously been explored for such minerals.
The Bank of Namibia has reported that diamond export earnings fell sharply from $307.7m (N$5.1bn) in the final quarter of 2022 (Q4 2022) to N$1.7bn in Q1 2025, identifying declining exports as a major risk to national economic growth.
Kenzoll Capital has previously committed more than $10m to Namibia.
The company has stated that its goal is to bring a key employer back into operation and support the local community, subject to regulatory approval.
Kenzoll Capital CEO Corné Melissen said: “Elizabeth Bay has spent most of the past eight years out of action and we are committed to getting the mine producing again, providing jobs and economic value to an area that has relied heavily on diamonds for over a century.
“This partnership is part of our long-term commitment and investment in Namibia, with diamonds as the starting point and critical minerals to follow.”
