Andrada Mining has partnered with SQM to develop its Lithium Ridge asset, a strategically significant mining site near Uis Mine. The agreement involves a potential USD 20 million investment from SQM for exploration and feasibility studies, aimed at enhancing local job creation and skills development. Andrada’s restructuring efforts also aim to increase local ownership and empowerment, aligning with sustainable development goals.
In a pivotal advancement for Namibia’s mining industry, Andrada Mining Limited has entered into a strategic partnership with Sociedad Química Minera de Chile SA via its Australian subsidiary, SQM. This collaboration centers on the development of Andrada’s Lithium Ridge asset, a fully permitted mining site encompassing approximately 3,300 hectares, located just 35 kilometers from the flagship Uis Mine. The area is noted for its rich mineralization including dominant spodumene lithium, as well as tin and tantalum. Under the terms of the agreement, which awaits the approval of the Namibian Competition Commission, SQM will invest in the exploration efforts and conduct a Definitive Feasibility Study. This funding will enable Andrada Mining to concentrate on resource declaration while benefiting from SQM’s extensive resources and expertise. Notably, this potential investment, estimated at USD 20 million over the next three and a half years, is expected to spur local economic activity, generating jobs and enhancing skills in the mining sector. Furthermore, SQM’s investment is reflective of its long-standing commitment to harnessing Namibia’s lithium resources, which are increasingly vital in the global transition towards renewable energy and electric vehicles. The company has reiterated its successful track record in Namibia, emphasizing policies that favor local suppliers and employment, reporting that 99% of its workforce comprises Namibians and 95% of its supply expenditure is allocated within the country. Prior to finalizing the partnership with SQM, Andrada restructured its Uis Tin Mining Company, raising its ownership stake from 85% to 100%. This strategic move included acquiring the 15% interest previously held by the Small Miners of Uis, an organization dedicated to supporting economic development within historic mining communities. The partnership has proven beneficial for both entities, enabling them to advance the operational efficiency of the Uis Mine and further develop their mineral licenses. Additionally, this restructuring aligns with Andrada’s empowerment initiatives, as the company allocated listed shares to Sinco Investments Five (Pty) Ltd and Small Miners of Uis, both representing historically disadvantaged Namibians. Consequently, this maneuver allows local stakeholders to participate in the company’s growth across its various assets, including Brandberg West.
Andrada Mining Limited’s partnership with SQM is a strategic advancement in Namibia’s mining landscape, specifically focusing on lithium development. Lithium Ridge is positioned as a significant mining site due to its approval status and rich mineral deposits, which are crucial for both the mining sector and the broader renewable energy transition. The anticipated investment from SQM underscores the collaborative support for local economic growth and job creation, pertinent to the sustainable development goals for Namibia.
The collaboration between Andrada Mining Limited and SQM signifies a major step forward for Namibia’s mining sector, particularly in lithium exploration and development. With a substantial forthcoming investment aimed at enhancing local economic conditions, the partnership not only strengthens Andrada’s operational base but also reflects a broader commitment to empower local communities and promote sustainable mining practices in Namibia’s evolving economic landscape.
Original Source: economist.com.na
