Paragon Investment has ventured into offshore diamond mining in Hottentots Bay, through a partnership involving its subsidiary Edgehill Resources and Kenzoll Capital, an Amsterdam-based private equity firm.
Kenzoll Capital acquired the offshore mining vessel Adamastor, marking the firm’s expansion into Namibia with a focus on diamond mining.
Paragon Investment Holdings co-founder Lazarus Jacobs said the venture is executed through LK Mining, a joint venture that includes Paragon’s subsidiary Edgehill Resources, Epia Investments, and Lazare Kaplan International Inc.
“This collaboration positions Kenzoll Capital as a key player in Namibia’s mining sector, leveraging advanced marine mining technology,” he said.
The Adamastor is equipped to operate at depths of 90 to 150 metres, utilising remotely operated vehicles and hydraulic systems for efficient diamond extraction.
The vessel features onboard processing facilities and a dynamic positioning system, making it highly suited for deep-sea mining.
“This investment aligns with Kenzoll Capital’s strategy of targeting frontier markets, complementing its interests in gold mining in Zimbabwe and oil exploration in Egypt. Namibia’s stable political environment and reputation for producing high-quality diamonds offer promising prospects,” said Tjeripo Hijarunguru of Epia Investments.
The Adamastor is expected to arrive in Namibian waters by October 2024. LK Mining representatives, Jacobs and Hijarunguru expressed optimism about the potential of the Hottentots Bay concession, highlighting its high diamond recovery rates.
“The expected yield of 0.2 to 0.4 carats per cubic metre underscores the region’s rich diamond deposits and favourable marine conditions for preservation,” the representatives said.
The venture marks Paragon’s entry into the mining sector, with the potential to boost Namibia’s economy and further establish Kenzoll Capital’s presence in the global diamond market.
