Kazera Global, the UK-based investment company listed on the London Stock Exchange, has confirmed that its 60%-owned subsidiary, Whale Head Minerals, has been granted a mining permit for the Walviskop mine in South Africa.

Heavy mineral sands production

In a statement, the company said that the granting of the permit will facilitate the start of heavy mineral sands production at the mine, which is within the vicinity of Alexander Bay and Port Nolloth. It covers more than five hectares of beach sand deposit, it added.

Dennis Edmonds, Kazera Chief Executive Officer, commented: "We are delighted with the latest developments at the Walviskop mine. The grant of the Permit vindicates our confidence in South Africa's mining legislation and the way in which it is currently being implemented. We are now focused on commencing production of Heavy Mineral Sands from the Walviskop mine, in addition to enhanced diamond production rates.

“This development will have a substantial positive impact on the Company's profitability and could also generate broader opportunities for Kazera in the Richtersveld,” he said.

Mineral Resources and mining permits

The Permit grants the Company a five-year period to mine the deposit, with the possibility of further extensions. Following the grant of the permit, the Walviskop mine is expected to generate positive cashflow from operations within the next six months and produce circa 6,000 tonnes of HMS per month, achieving an estimated gross profit in excess of US$300,000 per month at current prices, the statement said.

In addition, Kazera said that it is in the process of applying for a Prospecting Right over an adjacent beach, which appears to share similar characteristics to Walviskop and which is approximately 34 times larger.

The announcement follows a decision by South Africa’s Department of Mining and Mineral Resources to dismiss a third party’s appeal against the granting of a mining permit to Whale Head Minerals. 

Walviskop sits within the diamond mining operations of the company's other South African subsidiary, Deep Blue Minerals. It added that potential partners have already been identified to build the Walviskop processing plant.