Kazera Global plc shares surged 38% after the company received approval for a mining right over its Sea Concession 2A heavy mineral sands project in the Northern Cape, marking a major milestone in its growth strategy.
The approval is described by the company as transformational for its heavy mineral sands business and a crucial step toward development in partnership with South Africa AT Investments (SAI). Upon formal execution of the mining right, a further US$1.75 million will be payable to Whale Head Minerals, and SAI will expand joint operations into the concession area.
Commercial production is targeted to begin in the first quarter of 2027, with plans to ramp up to at least 10,000 tonnes of concentrate per month by the second quarter. SAI has already commenced shipping 30 containers of construction equipment from China to support development activities.
The 3,095-hectare concession has been granted for an initial 10-year term and covers valuable minerals including garnet, monazite, zirconium, and rutile. A recent technical report identified approximately 1.31 million tonnes of economic heavy minerals within just 1.42% of the licensed area, with an indicative gross in-situ value of US$369.3 million. The remaining area, 98.58%, is classified as a geological target with a potential to contain an additional 265.2 million tonnes of heavy mineral sands.
Chief Executive Richard Jennings described the approval as “the most significant milestone in Kazera’s history,” emphasizing that it provides the regulatory platform necessary to unlock the full potential of the project.
This development positions Kazera Global at the forefront of the heavy mineral sands sector in South Africa, with a clear pathway to commercial production and partnership growth over the coming years.
