GEM buys into local diamonds
Sperrgebiet Diamond Mining announced a majority equity investment by Global Emerging Markets Group (GEM).SDM is a Namibian company that owns four onshore and offshore diamond mining licences in the restricted diamond areas around Lüderitz. Its main land-based operation is located at Elizabeth Bay 40km south of Lüderitz.
Among other investments, the resources division of the GEM Group holds mining and energy assets in Zimbabwe. Their aim is to expand their footprint in these two sectors in Southern Africa and the continent in the longer term.
Their current African investments include a majority shareholding in RioZim which is one of the biggest gold producers in Zimbabwe. RZM Murowa which is one of the world's leading diamond producers, is an affiliate of RioZim.
The company also owns a base metal refinery and an energy business unit focused on generating green energy and minimising the carbon footprint of its mining operations. The group wishes to expand this portion of its business with its newly acquired mining asset in Namibia.
SDM acquired the mining asset from Namdeb in October 2020 and invested in the project through an environmental clean-up campaign and the care and maintenance of the existing main processing plant with the aim to recommission it.
Additional capital investment has been solicited by the shareholders, culminating in a share sale transaction between the Namibian shareholders being the founders, Lewcor Holdings and its minority partners, David Sheehama, MSF Commercials, and the GEM Group.
The equity transaction was well received by the government of Namibia and gained approval from the Namibian Competition Commission and the Minister of Mines and Energy. The deal was finalised on 20 May this year, with the GEM group subsidiary obtaining 78% of the shareholding and Namibian shareholders retaining 22% inclusive of an Employees Trust of 2%.
In Q4 2022, the company is gearing up to start operations at historic production levels under Namdeb. The immediate aim is to double production by mid-2023 by implementing an infield pre-treatment facility as the second phase. The company is amidst an aggressive recruitment drive, aiming to employ up to 180 people by the end of the year, with a further increase during phase two.
The shareholders, board, and management look forward to operations at SDM to restart and for the company to become a sustainable development partner to the local community, the economy of Lüderitz, and the country at large.