Niël Terblanche
Paragon Investment Holdings, through its subsidiary Edgehill Resources, has made an entrance into the offshore diamond mining sector.
Partnering with Kenzoll Capital and other key stakeholders, Paragon is part of the joint venture behind the acquisition of the Adamastor, a state-of-the-art mining vessel set to operate in Hottentots Bay.
This move positions Paragon as a new player in the lucrative offshore diamond industry, which is crucial to the country’s economy.
LK Mining’s representative, Lazarus Jacobs, has expressed optimism about the project’s potential, highlighting the favourable marine conditions and the high recovery rate of diamonds in the area.
“The expected yield of 0.2 to 0.4 carats per cubic meter underscores the region’s rich diamond deposits and favourable marine conditions for preservation,” he said.
The Adamastor, equipped with advanced marine technology, is expected to commence operations in October 2024.
The Adamastor will be managed under a joint venture involving LK Mining, Paragon Investment Holdings’ subsidiary Edgehill Resources, Epia Investments, and Lazare Kaplan International Incorporated, positioning Kenzoll Capital as a new key player in this vital sector.
Equipped with advanced marine mining technology, the Adamastor is designed to operate at depths ranging from 90 to 150 meters, utilising remotely operated vehicles (ROVs) and hydraulic systems for efficient diamond extraction.
The vessel’s onboard processing facilities and dynamic positioning system are expected to enhance the efficiency and sustainability of deep-sea mining operations, an area where Namibia has long held a global leadership position.
The Namibian offshore diamond mining industry has a storied history dating back to the 1960s when marine diamond deposits were first discovered.
Over the decades, this sector has evolved into a major contributor to the national economy, with companies like Debmarine Namibia, a joint venture between the Namibian government and De Beers, leading the way.
Today, Namibia is the world’s largest producer of marine diamonds, and the offshore sector contributes significantly to the country’s GDP and foreign exchange earnings.
This initiative is anticipated to create jobs and stimulate local economies, especially in surrounding communities.
This investment also aligns with Kenzoll Capital’s broader strategy of targeting frontier markets, complementing its existing interests in gold mining in Zimbabwe and oil exploration in Egypt.
