Kenzoll Capital, an Amsterdam-based private equity firm, and its local partners, led by Paragon Investment Holdings, have announced the long-awaited arrival of their Adamastor diamond mining vessel at Lüderitz harbour. 

Now that the vessel has reached Namibian waters, it is set to commence operations in Hottentots Bay, off the Skeleton coast. 

According to Paragon, initial assessments of Hottentots Bay indicate promising diamond recovery rates, with yields expected to average between 0.2 and 0.4 carats per cubic metre.

Meanwhile, the vessel’s arrival marks a transformative step forward for Namibia’s offshore mining sector, where previously only Debmarine was active. This 50-50 government partnership with mining giant De Beers increased its revenue by 83% to over N$13 billion in 2022, up from N$7.2 billion in 2021. This was achieved on the back of increased production, higher prices and a weaker Namibia dollar against major currencies. 

Namibia is the world’s largest producer of marine diamonds, and the offshore sector contributes significantly to the GDP and foreign exchange earnings.

The new vessel, acquired by Kenzoll Capital, in partnership with LK Mining, the local consortium led by Paragon’s subsidiary, Edgehill Resources, alongside Epia Investments and Lazare Kaplan International Inc, is outfitted with state-of-the-art marine mining technology. 

“The Adamastor is engineered for offshore diamond extraction at depths of up to 32 metres. Its advanced systems, including hydraulic extraction, onboard diamond processing, and X-ray final recovery technology, enable precise and efficient underwater mining operations. The vessel’s self-sufficiency and technological edge position it as a flagship asset within Namibia’s expanding offshore diamond industry,” reads a Paragon Investment Holdings statement. 

“This is a landmark moment for Kenzoll Capital and our partners at LK Mining,” said Lazarus Jacobs, representative of LK Mining. 

“The arrival of the Adamastor represents more than just an operational achievement — it’s a testament to our dedication to Namibia’s mining industry and the economic and social development of the Lüderitz region,” he said.

The statement added that investment in the vessel is aligned with Kenzoll Capital’s focus on frontier markets, complementing a diversified portfolio that includes ventures in Zimbabwe’s gold mining and Egypt’s oil exploration sectors. 

“Amid global market challenges, Namibia’s stable political environment and reputation for high-quality diamonds underscore the long-term potential of the Adamastor’s operations,” the statement added. 

The statement continued that the Adamastor’s presence heralds a new era in Namibian mining, driven by local expertise, global investment, and advanced technology. 

“With LK Mining’s commitment to community engagement and sustainable practices, the project is poised to deliver economic benefits to Lüderitz while fostering positive social impact for local communities.”