Kazera Global's Strategic Supply Agreement Boosts Heavy Mineral Sands Market

Kazera Global

In a significant development in the minerals trading sector, UK-based Kazera Global, through its subsidiary Whale Head Minerals (WHM), has entered into a robust supply agreement with Fujax South Africa, a prominent player in the energy and mineral trading landscape. This partnership marks a pivotal advancement in the heavy mineral sands (HMS) market, crucial for various high-demand industrial materials.

The Essence of the Agreement

Under this new agreement, WHM commits to supplying an impressive initial volume of 100,000 tons of HMS, to be delivered in monthly installments of 6,000 tons starting from March 2025. This move not only highlights WHM's operational capacity but also its strategic positioning within the global supply chain of critical minerals.

HMS, containing valuable ores such as rutile, ilmenite, zircon, and monazite, is indispensable in manufacturing sectors related to titanium, zirconium, and rare earth elements. These materials are integral to various high-tech and industrial applications, underscoring the strategic importance of this agreement.

Financial Dynamics and Operational Enhancements

In terms of financial arrangements, Fujax has agreed to advance WHM 80 percent of the final sales price, subtracting costs, with two pre-payment installments of $600,000 each scheduled for December and January 2025. Moreover, Fujax will take on all responsibilities related to the transportation, processing, and selling of the HMS, alleviating logistical burdens from WHM.

To support this deal, WHM has ramped up production at its Walviskop plant in South Africa, where it reports a reserve of 1,500,000 tons of HMS. The company's CEO, Dennis Edmonds, emphasized the strategic importance of this facility and hinted at future expansions, particularly at the nearby Perdevlei site, which is estimated to be 34 times larger than Walviskop.