Namibia’s Elizabeth Bay Mine Targets Restart Under US$50 Million Investment Plan
Dutch private equity and special situations investor Kenzoll Capital has partnered with Namibian-registered MSF Commercials to restart operations at the Sperrgebiet Diamond Mine, formerly known as the Elizabeth Bay Mine, near Lüderitz in southern Namibia.
The project aims to revive the historic diamond operation, which has been largely inactive since 2018, while exploring opportunities to develop additional mineral resources.
Following regulatory approvals, the investment is expected to reach US$50 million, supporting the mine’s restart and the exploration and potential production of heavy mineral sands and critical minerals.
The mine’s licences cover approximately 245,364 hectares within the Sperrgebiet, a restricted diamond mining area.
The site holds estimated onshore diamond resources of 6.3 million carats and offshore resources of 4.2 million carats, bringing its combined estimated resources to 10.5 million carats.
Kenzoll Capital said it had already committed more than US$10 million to Namibia and intends to support local employment and economic activity through the mine’s revival.
“Elizabeth Bay has spent most of the past eight years out of action and we’re 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,” said Kenzoll Capital chief executive Corné Melissen.
He added that the partnership formed part of the company’s long-term investment commitment to Namibia, with diamond production serving as the initial focus before expanding into critical minerals.
The partnership comes after several years of operational challenges at Elizabeth Bay.
The mine was placed on care and maintenance by Namdeb in September 2018 after the company concluded that operations were no longer economically viable.
Namdeb, a 50:50 joint venture between the Namibian government and De Beers, subsequently sold the mine and associated marine assets to Sperrgebiet Diamond Mining (SDM), a Namibian-owned consortium.
The transaction was finalised in 2020, but the mine did not return to sustained production as expected.
In 2023, SDM retrenched workers after production and diamond recovery rates fell short of expectations, while financial difficulties further complicated efforts to restore operations.
Kenzoll Capital’s entry represents another attempt to bring the asset back into production.
Beyond diamonds, the partners plan to investigate the potential for heavy mineral sands and critical metals within the licensed areas, which have not previously been explored for these resources.
The proposed expansion could broaden the mine’s resource base and create opportunities to diversify mineral production, subject to the necessary regulatory approvals and exploration results.
The planned restart comes at a challenging time for Namibia’s diamond industry, which has experienced a sharp decline in export earnings.
Diamond exports fell from a peak of N$5.1 billion in the fourth quarter of 2022 to N$1.7 billion in the first quarter of 2025, according to figures cited in the report.
The Bank of Namibia has warned that declining diamond export earnings pose a significant risk to economic growth.
Against this backdrop, the proposed investment could help restore mining activity and employment in the Lüderitz area, where diamond mining has played an important economic role for more than a century.
Sperrgebiet Diamond Mine director Conan Mlunga said the partnership would combine international capital with local expertise to restart operations and create value beyond diamonds.
The project’s progress will depend on regulatory approvals, the successful recommissioning of the mine and the commercial viability of its planned operations.
If successful, the investment could support renewed activity at Elizabeth Bay while advancing Namibia’s efforts to attract capital and diversify mineral development beyond traditional diamond production.
