Kazera Global (AIM:KZG) told investors that South Africa's Department of Mineral Resources and Energy has formally approved a Mining Right over Sea Concession 2A in the Northern Cape, following a recommendation from the Regional Mining Development and Environmental Committee.
The right, held through Kazera's wholly owned subsidiary Whale Head Minerals, covers approximately 3,095 hectares and grants exclusive rights to mine garnet, monazite, zirconium, rutile and other heavy minerals for an initial 10-year term from 26 August.
Once executed, the approval triggers a $1.75 million payment to Whale Head Minerals from South Africa AT Investments (SAI), Kazera's strategic partner, which will then expand its joint operations into 2A under the companies' existing arrangement.
SAI has already begun shipping 30 containers of equipment from China for the construction phase, with commercial production targeted for the first quarter of 2027 and output ramping to a minimum 10,000 tonnes per month of concentrate by the second quarter.
A technical report published on 24 August found an inferred resource of 1.31 million tonnes of economic heavy minerals within just 1.42% of the licence area, valued at approximately $369.3 million in situ, with the remaining 98.58% identified as a geological target holding an estimated further 265.2 million tonnes.
"The approval of the Mining Right for 2A represents the most significant milestone in Kazera's history and marks the beginning of an extremely exciting new chapter for the Company," said Richard Jennings, chief executive.
Execution requires signing before a public notary and registration with the Mineral and Petroleum Titles Registration Office in Pretoria, a process the company expects to complete within the next few weeks.
News Intelligence what this means for the company
South Africa's mining regulator has formally approved Kazera's 10-year Mining Right over the 2A heavy mineral sands concession, unlocking a $1.75 million payment from partner SAI and clearing the path to commercial production in Q1 2027. This completes the regulatory gauntlet that has occupied the company since at least April 2026, when the application was still progressing; the approval now allows SAI to expand joint operations into 2A with equipment already en route from China.
- The $1.75 million payment from SAI materially strengthens Kazera's near-term liquidity position, which the factfile notes has been under pressure; this inflow arrives ahead of production revenue and reduces reliance on external capital raises or shareholder dilution.
The Mining Right approval removes a binary regulatory risk that has hung over the 2A asset for months and validates the resource economics: the inferred 1.31 million tonnes of economic heavy minerals (valued at $369.3 million in situ) now has a legal foundation to be mined. Execution risk shifts from permitting to operational delivery—SAI's equipment mobilization and the Q1 2027 production target are now the critical milestones.
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