Dutch private equity firm Kenzoll Capital has partnered with Namibian-registered MSF Commercials to restart the Sperrgebiet diamond mine, formerly known as Elizabeth Bay, with N$843 million (US$50 million) earmarked for mine development and further exploration.
Kenzoll Capital said the operation hosts an estimated 10.5 million carats of onshore and offshore diamond resources, providing the resource base for the planned revival of the historic mine.
Kenzoll Capital Chief Executive Officer Corné Melissen said the investment will focus on returning the operation to production while creating employment and economic activity in southern Namibia.
“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,” Melissen said.
The Sperrgebiet investment forms part of Kenzoll Capital’s broader investment strategy in Namibia, with the firm indicating that diamonds could provide an entry point for future exploration and investment in other critical minerals.
Kenzoll has already invested more than N$166 million (US$10 million) in Namibia and said its investments are targeted at supporting local employment and wider economic activity.
The planned restart comes as Namibia’s diamond industry faces weaker export earnings. Diamond exports declined 67% from N$5.1 billion in 2022 to N$1.7 billion in 2025, while the Bank of Namibia has identified weakness in the diamond industry as a risk to economic growth.
Elizabeth Bay was previously operated by De Beers, which began a process to dispose of the mine in 2018 after determining that the operation was no longer economically viable under its ownership.
The sale was completed in 2019 to a consortium comprising Lewcor Group as majority shareholder and MSF Commercials as a minority shareholder.
Kenzoll Capital is an Amsterdam-based private equity and special situations investment firm focused on frontier and event-driven opportunities.
