Kazera Global seals long-term deal to develop South Africa mineral sands project

Kazera Global has signed a long-term partnership agreement that could reshape the future of its heavy mineral sands operations in South Africa, giving its Whale Head Minerals (WHM) subsidiary access to full project funding and technical support. 

The AIM-listed mining company said WHM has entered into a mining cooperation and production sharing agreement with South Africa AT Investments (SAI), which will fund the development of the project, including capital expenditure, mining operations, processing facilities, infrastructure and working capital. 

The agreement comes as global demand increases for critical minerals such as zirconium and titanium, which are used in industries ranging from manufacturing and construction to advanced technology.

For Kazera, the deal provides a path to expand production without placing additional financial pressure on shareholders. 

Kazera interim CEO Richard Jennings described the agreement as the most important in the company’s history, saying SAI’s experience in mineral processing and large-scale operations gives the company confidence that WHM’s assets can be developed on a commercial scale.

Partnership removes funding pressure

Under the agreement, SAI will finance 100% of the costs required to develop WHM’s heavy mineral sands project, while Kazera will retain a 20% share of all HMS products produced over the life of the mine. 

The arrangement allows Kazera to benefit from future production without funding mining and processing costs. The company said it also avoids shareholder dilution while transferring much of the development and operational risk to its strategic partner. 

Jennings said SAI’s expertise in zirconium and titanium processing would help address challenges that have slowed progress at WHM in recent years. 

“Seeing first-hand the scale of its zirconium and titanium processing operations gave us considerable confidence in its ability to develop our HMS assets at industrial scale,” Jennings said.

Expansion plans target larger production 

The first phase of the partnership will focus on increasing output at WHM’s Walviskop mining operation and preparing for the larger 2A heavy mineral sands project, subject to regulatory approval. 

Kazera said the companies will prepare a detailed mine plan within 30 days, covering production targets, processing capacity and operational requirements.

First production under the new development programme is expected by the end of the year. 

The agreement also includes potential benefits for Kazera’s diamond subsidiary, Deep Blue Minerals (DBM), as HMS operations are expected to produce diamond-bearing gravels as a by-product.

These materials and any recovered diamonds will remain under DBM’s ownership.

Kazera and SAI build long-term mining platform 

Kazera said the partnership creates the foundation for a long-life mineral sands operation capable of producing zirconium and titanium products for many years. 

Once the 2A mining right is granted, SAI will make a second advance payment of $1.75 million and begin the next stage of development, expanding operations into the larger project area. 

Kazera Global is an AIM-listed mining company focused on developing mineral resource projects in Africa, including heavy mineral sands and diamond assets.

Its WHM subsidiary operates the Walviskop and 2A mineral sands projects in South Africa. 

SAI is a subsidiary of Xiamen Antai Zirconium Co, a Chinese industrial group specialising in zirconium and titanium raw materials, processing and zirconium silicate production.