Another Restart for Elizabeth Bay Diamond Mine
October 12, 26
(IDEX Online) - Namibia's Elizabeth Bay diamond mine is preparing for another restart after a history of closures, changes of ownership and a previous revival that failed to meet production targets.
Dutch private equity and special situations investor Kenzoll Capital has partnered with Namibia-registered MSF Commercials to restart the Sperrgebiet Diamond Mine, formerly known as Elizabeth Bay, near Luderitz in southern Namibia.
Production is expected to resume in November. Following regulatory approvals, investment is expected to reach $50 million as the partners explore opportunities to produce heavy mineral sands and critical metals as well as diamonds.
They report onshore diamond resources of 6.3 million carats and offshore resources of 4.2 million carats.
"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 Corne Melissen, CEO of Kenzoll Capital.
"This partnership is part of our long-term commitment and investment in Namibia, with diamonds as the starting point and critical minerals to follow."
Diamond mining at Elizabeth Bay began in 1911, but operations were repeatedly disrupted by war and economic downturns.
The modern mine was commissioned in 1991 under Consolidated Diamond Mines, later becoming part of Namdeb, the 50:50 joint venture between the Namibian government and De Beers.
Namdeb placed it on care and maintenance in 2009, then redesigned the operation to cut costs and improve recovery.
Production resumed in November 2011, but the mine was again placed on care and maintenance in September 2018 after Namdeb concluded it was no longer economic.
The mine and associated marine assets were sold to a Namibian consortium in a deal finalized in 2020.
The new owners restarted production in 2022, but operations stopped again in March 2023 after output fell well below target. NamPower subsequently disconnected the electricity supply over unpaid bills.
File pic from 2018 shows Elizabeth Bay's diamond-processing plant Credit Druschba 4, CC BY-SA 4.0 under Creative Commons Attribution-Share Alike 4.0 International license.