SQM has gained approval to enter a joint development agreement with Andrada Mining for the Lithium Ridge asset in Namibia, signaling its first partnership in Africa. This collaboration aims to expedite project development and entails a potential investment of up to $40 million by SQM, benefiting the local economy.
Chile’s SQM (NYSE: SQM), the second largest lithium producer globally, has received approval to initiate an earn-in agreement with Andrada Mining, based in South Africa, concerning the joint development of the Lithium Ridge asset in Namibia. This partnership signifies SQM’s inaugural venture into the African continent and is anticipated to expedite the development of this lithium project, strategically located approximately 35 kilometers from Andrada’s Uis tin mine.
Under the terms of the agreement, SQM holds the option to acquire up to a 50% interest in Grace Simba Investments (GSI), a subsidiary of Andrada Mining that possesses the Lithium Ridge license. Anthony Viljoen, Andrada’s Chief Executive Officer, remarked that this approval is a critical component for the complete launch of their transformative partnership.
Mr. Viljoen highlighted SQM’s proposed investment of up to $40 million, which is expected to serve as a catalyst for both the advancement of the Lithium Ridge project and economic development in the lithium-endowed Erongo region. Andrada Mining will retain operational control of the project and is entitled to a success fee should the lithium resource surpass 40 million tonnes.
In summary, SQM’s partnership with Andrada Mining marks a noteworthy expansion into Africa, with significant potential for project growth and economic stimulation in Namibia’s Erongo region. The investment of up to $40 million underscores the strategic importance of this collaboration for both parties, as they aim to capitalize on the region’s rich lithium resources.
Original Source: www.mining.com
