Dutch private equity and special situations investor Kenzoll Capital has partnered with MSF Commercials to restart operations at the Sperrgebiet diamond mine, formerly known as the Elizabeth Bay mine, near Lüderitz, in southern Namibia.

The Sperrgebiet diamond mine’s licences cover 245 364 ha of the Sperrgebiet, the restricted diamond mining area. It holds onshore diamond resources of 6.3-million carats and offshore diamond resources of 4.2-million carats.

The partnership will explore and extract heavy mineral sands and critical metals on these mining licences, which previously have not been explored.

Kenzoll Capital says it has committed over $10-million to Namibia previously and is focused on getting a crucial employer back into operation to support the community and the country.

Sperrgebiet diamond mine owns some of the oldest diamond licences in Namibia and, following regulatory approvals, the investment is expected to reach $50-million as exploration into other minerals and their production takes place.

“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.

“This partnership is part of our long-term commitment and investment in Namibia, with diamonds as the starting point and critical minerals to follow,” says Kenzoll Capital CEO Corné Melissen.

Diamond exports fell from a peak of N$5.1-billion in the final quarter of 2022 to N$1.7-billion in the first quarter of 2025, with the Bank of Namibia warning that falling diamond export earnings posed a major threat to growth.

“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’s priorities is a sign of the attractiveness of Namibia as a mining jurisdiction.

“Their support of MSF, and by extension the Sperrgebiet diamond mine, will combine international capital and local expertise to get the mine back up and running to build value beyond diamonds,” says Sperrgebiet diamond mine director Conan Mlunga.