Kazera Global has agreed a US$10.5 million settlement with Hebei Xinjian Construction, bringing a long-running dispute over the sale of its former Namibian tantalum and lithium business a step closer to resolution and potentially unlocking total proceeds of US$14.6 million from the transaction.
The settlement follows a favourable arbitration ruling in Namibia last year after Hebei defaulted on payments linked to the 2022 acquisition of African Tantalum (Aftan), a mining operation with tantalum and lithium assets in Namibia.
As part of the agreement, Hebei is expected to make an initial US$500 000 payment from Namibia before 6 July, triggering a structured settlement programme that will run until December 2029.
The dispute dates back to December 2022, when Kazera sold Aftan to Hebei for approximately US$13 million. While Kazera received about US$4.1 million under the original agreement, further payments failed to materialise, prompting the company to launch arbitration proceedings in Namibia.
In May 2025, an arbitral tribunal ruled substantially in Kazera’s favour, awarding the company approximately US$11.9 million, plus interest and costs. Although Kazera remained confident of enforcing the award, the company said a negotiated settlement offered greater certainty and a clearer path to recovery than a potentially lengthy legal enforcement process.
Under the settlement agreement, Hebei will pay a total of US$10.5 million through a structured instalment schedule ending in December 2029. The agreement also allows Hebei to settle early through a discounted payment of US$9 million if the full amount is paid by 31 December 2026.
The settlement is structured around two components, comprising approximately US$7 million in shareholder loan repayments and US$3.5 million relating to the transfer of Aftan shares.
Importantly, Kazera will retain control of Aftan until aggregate payments of at least US$7.125 million have been received. Ownership will then transfer in four separate 25% tranches as payment milestones are reached, with all transferred interests pledged back to Kazera as security until the settlement has been fully discharged.
The company said the arrangement contains significant downside protection, including acceleration clauses and automatic unwind provisions should Hebei default on two payments.
Interim chief executive Richard Jennings described the agreement as a breakthrough following years of uncertainty surrounding the transaction.
“This is a significant and highly positive milestone for Kazera and its shareholders. We have executed a definitive settlement agreement in respect of the Aftan arbitration which provides a clear pathway to significant further value recovery,” Jennings said.
If completed in full, the settlement would bring Kazera’s total receipts from the Aftan transaction to approximately US$14.6 million, exceeding the original cash consideration agreed in 2022.
The company said the expected inflows would strengthen its financial position and allow management to focus on advancing its Namibian portfolio, including Whale Head Minerals, the REMI partnership at Walviskop and efforts to secure the strategic 2A Mining Right.
Kazera also indicated that, subject to legal, tax and regulatory considerations, it intends to return approximately 80% of net proceeds received under the settlement to shareholders.
