Kazera and Hebei Settle Namibia Tantalum Arbitration Dispute
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TL;DR
- Kazera Global and Hebei Xinjian Construction reached a $10.5 million settlement.
- The dispute related to a tantalum and lithium mining business in Namibia.
- The settlement follows an arbitration award previously granted in Kazera's favor.
- Hebei will withdraw its review application as part of the agreement.
Overview
Kazera Global and Hebei Xinjian Construction have signed a settlement agreement regarding an arbitration dispute over African Tantalum, Kazera's former tantalum and lithium mining business in Namibia. The settlement involves Hebei paying Kazera $10.5 million over a structured period, with provisions for early payment at a discount and additional protections for Kazera.
What Happened
Kazera initiated arbitration proceedings in Namibia after Hebei defaulted on payments under a 2022 share sale and loan agreement concerning African Tantalum (Aftan).
In May 2025, Kazera announced it had received an arbitration award in its favor, valued at approximately $11.9 million plus interest and costs.
Hebei has previously paid Kazera about $4.1 million, and the new settlement will involve additional payments totaling $10.5 million by December 2029, with an option for early settlement at a discounted $9 million if paid by the end of 2026.
The settlement provides a pathway for Kazera to potentially receive up to $14.6 million, surpassing the original sale consideration of $13 million. Hebei will withdraw its review application regarding the arbitration, and Kazera intends to return up to 80% of net proceeds to shareholders, subject to certain conditions.
Context
The dispute arose after Hebei defaulted on payment obligations following the sale of African Tantalum by Kazera. Arbitration was initiated as a contractual remedy, leading to a favorable award for Kazera.
The settlement offers a commercial resolution both parties accepted, reducing uncertainty around payment timing, costs, and enforcement.
Kazera notes the agreement aligns with its strategy of focusing on value realization and capital discipline in its investment portfolio.
Why It Matters
- The settlement resolves an extended commercial arbitration over mining assets in Namibia, providing Kazera with a structured payment schedule and potential cash returns to shareholders.
- It removes ongoing legal uncertainty and related costs, allowing Kazera to focus on other operations and investments.