Kazera Global plc (LSE:KZG) has reported progress in preparations for mineral processing operations at Walviskop and the 2A area in South Africa, with its operating partner targeting approximately 240,000 tonnes of total heavy mineral concentrate production in 2027.
The AIM-listed investment company said South Africa AT Investment (Pty) Ltd (SAI) has deployed a seven-person technical delegation to the sites to advance mine planning, sampling, equipment selection and infrastructure preparations.
Under the production-sharing agreement between SAI and Kazera’s subsidiary Whale Head Minerals (Pty) Ltd (WHM), SAI will fund all capital expenditure and operating costs associated with the covered operations, while WHM will receive a 20% cost-free entitlement to production.
Kazera also confirmed that a US$1.75 million payment from SAI is ready to be made once the title to the 2A Mining Right has been formally registered. The company expects the registration process to conclude shortly, although completion remains outstanding.
SAI Draft Mine Plan Targets Three Processing Units in 2027
SAI’s preliminary development plan provides for the installation of three mineral processing units across Walviskop and the 2A area during 2027.
The number of processing units is expected to increase to five by 2029.
The draft plan targets approximately 240,000 tonnes of total heavy mineral concentrate production in 2027, with production volumes expected to increase over the following two years as additional processing capacity is installed.
These figures represent preliminary planning targets rather than confirmed production guidance.
Kazera said the mine plan and implementation timetable have yet to be finalised, and the proposed production schedule remains subject to further technical work and development preparations.
The company expects to provide additional information on production targets and implementation milestones once the mine plan has been completed.
SAI Technical Team Begins On-Site Development Preparations
A delegation of seven SAI representatives, including mining, machinery and geological specialists, is currently working at the South African sites.
The team is undertaking additional sampling at depth and reviewing the proposed layouts for mineral processing facilities.
Other activities include assessing equipment requirements, planning water supply arrangements and identifying supporting infrastructure needed for mining and processing.
The technical work will inform the final mine plan, including the sequence of development activities and the timetable for bringing processing units into operation.
Kazera said the on-site preparations are progressing alongside the remaining regulatory and administrative work associated with the 2A Mining Right.
No definitive construction commencement date has been announced.
WHM Retains 20% Cost-Free Production Entitlement
The production-sharing agreement establishes the financial responsibilities of SAI and WHM for the planned operations.
SAI is responsible for funding 100% of the capital expenditure, operating costs, infrastructure, equipment deployment and working capital required for the mining and processing activities covered by the agreement.
WHM retains a 20% cost-free entitlement to production.
This structure is intended to allow WHM to participate in production without directly funding the associated development and operating expenditure.
However, the value of WHM’s entitlement will depend on actual production volumes, product specifications, commercial arrangements and the prices achieved for the mineral concentrate.
Kazera has not provided a revenue forecast for WHM’s share of production or an estimate of the future financial contribution to the group.
US$1.75 Million Payment Awaiting Mining Right Registration
Kazera confirmed that SAI has indicated its US$1.75 million payment to WHM is ready for release following completion of the registration of title to the 2A Mining Right.
The payment remains conditional on final title registration.
Kazera said it anticipates completing the process shortly but did not specify an exact date.
The company is working with its advisers and South Africa’s Department of Mineral and Petroleum Resources (DMPR) to address outstanding requests for information.
These requests relate to WHM’s Black Economic Empowerment ownership arrangements and the formal documentation of community and employee interests.
Kazera intends to announce the completion of title registration and receipt of the payment once both have occurred.
Agreement With Rare Earth Minerals International Terminated
Kazera also announced that WHM has terminated its agreement with Rare Earth Minerals International (Pty) Ltd (REMI).
The agreement was originally announced on 26 May 2026.
Kazera said the termination allows SAI to proceed with its planned operating structure across Walviskop and the 2A area.
The company did not disclose any financial consideration, termination costs or other settlement arrangements associated with ending the REMI agreement.
Development planning is now progressing under the production-sharing arrangement with SAI.
Community and Employee Ownership Structures Near Completion
WHM is in the final stages of establishing two South African corporate entities to formalise ownership interests allocated to local communities and employees.
The WHM Community Development Company NPC (RF) will be established as a non-profit company to hold the 5% interest allocated to the local community.
The WHM Employee Participation Company (RF) (Pty) Ltd will hold a separate 5% interest on behalf of eligible employees.
These interests have previously been held in trust pending the establishment of the appropriate legal structures.
The arrangements form part of WHM’s Black Economic Empowerment ownership commitments.
Kazera said formalising the ownership structures is also relevant to the outstanding work required for registration of the 2A Mining Right.
Future Dividends to Fund Community and Employee Benefits
The proposed Community Company will use future dividends received from its WHM shareholding to support initiatives benefiting communities in Namaqualand and the wider Northern Cape.
Kazera identified education and healthcare as the principal areas of focus.
The Employee Company will provide a mechanism through which eligible employees can participate in the economic benefits generated by WHM’s operations.
Both entities will depend on future dividends from their respective shareholdings.
The announcement does not establish a timetable for dividend payments or specify the amounts that may become available.
Any distributions will depend on WHM’s future financial performance and its ability to declare dividends.
Kazera said the arrangements are intended to provide a formal basis for community and employee participation as the mineral processing operations develop.
Regulatory Work Continues Alongside Mobilisation
Kazera is continuing discussions with the DMPR regarding the documentation required to complete the registration of the 2A Mining Right.
The company said it is responding to requests for additional information relating to WHM’s ownership structure.
The formation of the community and employee companies is part of this process.
Meanwhile, SAI’s technical specialists are continuing their on-site preparations, including further sampling and infrastructure planning.
Kazera has not indicated that the outstanding registration process has prevented these preparatory activities from progressing.
However, the US$1.75 million payment remains dependent on registration being completed.
CEO Paul Dulieu Comments on Development Progress
Paul Dulieu, Chief Executive Officer of Kazera Global, commented on the progress of the SAI partnership and the remaining regulatory requirements.
“Having SAI’s technical specialists on site is an important step towards bringing WHM into production. They’re working with our team to turn the development plans into practical preparations on the ground. This work is also helping to finalise the mine plan and implementation timetable, and we’ll share its key elements with shareholders, including production targets and implementation milestones, once it is ready.
“In parallel, we’re working with our advisers and the DMPR to progress registration of the 2A mining right, which will trigger the US$1.75 million payment from SAI.
“Establishing the community and employee companies fulfils a longstanding commitment to both groups that has remained unfulfilled for too long. We want WHM’s success through its partnership with SAI to bring lasting benefits to the people of Namaqualand and the wider Northern Cape. Through future dividends, the Community Company will support local education and health initiatives, while the Employee Company will enable employees to share in the economic benefits of the business. These arrangements are central to that ambition and to building the trust that underpins our social licence to operate.
“I’m grateful for shareholders’ patience as we put the key elements in place to exploit this large-scale, long-life resource in tandem with SAI. I know you want to see progress translate into production and financial returns, and that’s what we’re focused on delivering. Our team is working hard alongside SAI to turn WHM’s potential into a substantial revenue-generating operation that delivers lasting value for Kazera shareholders. I look forward to keeping you updated on our progress in the weeks and months ahead.”
Next Steps for South African Operations
Kazera’s immediate priorities include completing the registration of the 2A Mining Right, receiving the US$1.75 million payment from SAI and finalising WHM’s community and employee ownership structures.
At the operational level, SAI will continue technical assessments and infrastructure planning to establish the final mine development programme.
The current draft plan provides for three processing units in 2027, increasing to five by 2029, with an initial production target of approximately 240,000 tonnes of heavy mineral concentrate.
These targets remain subject to final mine planning and implementation arrangements.
Kazera said it will provide further updates when title registration is completed and the SAI payment has been received, with additional details of the development schedule expected once the mine plan is finalised.
More About Kazera Global
Kazera Global plc is an AIM-listed investment company with interests in mineral resource projects in South Africa.
Its subsidiary, Whale Head Minerals, is involved in the development of heavy mineral processing operations at Walviskop and the 2A area.
Kazera is progressing these operations through a production-sharing partnership with South Africa AT Investment, under which WHM retains a 20% cost-free production entitlement.
The company is also formalising community and employee ownership arrangements associated with its South African operations.
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