Kazera Global (AIM:KZG) on Wednesday announced that its South African development partner has set out plans to install three heavy mineral sands processing units across the Walviskop and 2A areas during 2027, rising to five by 2029, as mobilisation work continues ahead of construction.
The AIM-quoted company's subsidiary, Whale Head Minerals (WHM), is working with South Africa AT Investment (SAI) under a production-sharing agreement in which SAI funds 100% of capital expenditure, operating costs, infrastructure and working capital, while WHM retains a 20% cost-free entitlement to production.
SAI's draft mine plan targets approximately 240,000 tonnes of total heavy mineral concentrate production in 2027, with volumes expected to rise materially over the following two years, though Kazera said the figures remain subject to finalisation of the mine plan and implementation timetable.
A seven-person SAI delegation, including mining, machinery and geological specialists, is on site conducting additional sampling at depth, reviewing plant layouts and equipment requirements, and planning processing facilities, water supply and supporting infrastructure.
Kazera has entered the SAI partnership in stages this year: a July agreement committed SAI to fund development across Walviskop and, subject to grant of the 2A Mining Right, the broader 2A project for the life of the relevant mining rights, with an initial US$750,000 advance already received.
SAI has now confirmed that a further US$1.75 million payment to WHM, due on grant of the 2A Mining Right, is ready to be made once final registration of title is complete, which Kazera said it anticipates concluding shortly.
WHM has terminated its earlier production-sharing agreement with Rare Earth Minerals International (REMI), struck in May to provide interim processing capacity at Walviskop, clearing the way for SAI to implement its own operating structure across both areas.
Separately, WHM is in the final stages of establishing a Community Development Company and an Employee Participation Company to formally hold the 5% interests in WHM previously held in trust for the local community and employees under its Black Economic Empowerment arrangements.
Both entities will be funded through future WHM dividends, with the Community Company directed toward local education and health initiatives and the Employee Company allowing staff to share in the business's economic benefits.
Kazera said it is working with advisers to address requests for further information from South Africa's Department of Mineral and Petroleum Resources as it progresses registration of the 2A mining right.
"Having SAI's technical specialists on site is an important step towards bringing WHM into production," said chief executive Paul Dulieu, adding that the work is "helping to finalise the mine plan and implementation timetable" that will be shared with shareholders once ready.