DMRE grants 10-year right for heavy mineral sands project
The Department of Mineral Resources and Energy (DMRE) has approved a mining right for a western coastal licence known as Sea Concession 2A, authorising Whale Head Minerals (WHM) — a wholly owned subsidiary of Kazera Global — to commence development and extraction of heavy mineral sands in the Northern Cape.
The authorisation, issued following consideration by the Regional Mining Development and Environmental Committee, is valid for an initial period of ten years with the option to renew under the Mineral and Petroleum Resources Development Act, 2002, according to reporting on the grant.
What the concession covers and planned output
The concession spans roughly 3,095 hectares on South Africa’s west coast and confers exclusive rights to mine a suite of heavy minerals, including garnet, monazite, zirconium, rutile and titanium dioxide‑rich leucoxene, among other heavy mineral products, the company said.
Kazera and its local partner South Africa AT Investments (SAI) have set an ambitious timetable: WHM is targeting the start of commercial production in the first quarter of 2027, with plans to increase concentrate output to at least 10,000 tonnes per month by the second quarter of that year. Equipment for the construction phase is reported to be en route from China, supplied through a collaboration involving SAI and Xiamen Antai Zirconium.
- Licence area: ~3,095 hectares
- Initial right duration: 10 years (renewable)
- Target for commercial production: Q1 2027
- Planned concentrate production: ≥10,000 tonnes/month by Q2 2027
- Immediate payment on execution: $1.75m (approx. R28.13m) to WHM from SAI
Resource estimates and economic indication
A technical study published in August 2026 identified an inferred mineral resource of about 1.31 million tonnes of economic heavy minerals within a portion of the licence area. That portion — estimated to represent roughly 1.42% of the 2A concession — carries an indicative in‑situ value of about $369.3m, the report states.
| Metric | Estimate |
|---|---|
| Inferred economic heavy minerals (identified portion) | 1.31 mt |
| Portion of licence area sampled | 1.42% |
| Indicative in‑situ value (identified portion) | $369.3m |
| Estimated remaining geological target (concession) | 265.2 mt (grades undetermined) |
The remainder of the concession is described in the report as a significant geological target, with an estimated 265.2 million tonnes of heavy mineral sands indicated but without determined grades for much of that area.
Partnership and immediate payments
Under the existing arrangements between Kazera and SAI, WHM will receive a one‑off payment of $1.75m (about R28.13m) from SAI upon formal execution of the mining right. SAI will also expand its operational footprint to include activities across the 2A concession, signalling a greater role for the local partner in on‑ground development.
The involvement of Chinese equipment suppliers for the construction phase has been reported, reflecting the international supply links common in mineral sands projects.
What this means for the Northern Cape
For the Northern Cape — the country’s largest and most sparsely populated province — the award moves this coastal mineral sands project from development planning into the mobilisation phase. If the timetable is met, the area could see increased activity, including construction, logistics and processing of concentrates within the next year.
However, the technical report’s classification of much of the concession as a geological target underlines that substantial portions of the licence still require further evaluation and grade confirmation before their economic potential can be fully assessed.
Local stakeholders, including provincial authorities and communities along the west coast, will be watching the project’s environmental approvals, employment plans and procurement commitments as the venture progresses.
Further details on operational schedules, local hiring and environmental management plans are expected as WHM and its partners finalise their construction and commissioning plans ahead of the stated production window.
