Andrada Mining Limited has entered into a partnership with SQM Australia to develop the Lithium Ridge asset in Namibia, which encompasses a 3,300-hectare permitted mining area. SQM’s investment of USD 20 million will enhance local economic activity and job creation, while Andrada focuses on resource declaration. The company has also increased its ownership stake in Uis Mine to 100%, reinforcing its commitment to local empowerment and development.
Andrada Mining Limited has established a partnership with Sociedad Química Minera de Chile SA, through its subsidiary, SQM Australia, to advance the development of the Lithium Ridge asset in Namibia. This project, which is supported by a fully permitted mining license that spans approximately 3,300 hectares, is strategically located around 35 kilometers from Andrada’s main operation at Uis Mine. The site is rich in multiple pegmatites that contain lithium, tin, and tantalum. Under the agreement, pending approval from the Namibian Competition Commission, SQM will finance exploration and a Definitive Feasibility Study, allowing Andrada to concentrate on resource declaration while leveraging SQM’s extensive resources. With a potential investment of USD 20 million over approximately three and a half years, SQM is poised to significantly impact the local economy by creating job opportunities and enhancing skills within the mining sector. This investment underscores SQM’s commitment to developing Namibia’s lithium resources, which are vital for the global transition to renewable energy and electric vehicle production. Notably, Andrada has prioritized local participation, with 99% of its workforce sourced from Namibia and 95% of supply expenditures localized. Before finalizing the agreement with SQM, Andrada successfully reorganized its Uis Tin Mining Company, increasing its ownership from 85% to 100%. This acquisition involved obtaining the 15% stake held previously by the Small Miners of Uis, an organization dedicated to supporting the economic advancement of Namibians in historically mining-centric areas. This restructuring aligned with Andrada’s empowerment objectives, as it included provisions for issuing shares to historically disadvantaged groups, ensuring that local communities, such as Small Miners of Uis and Sinco Investments Five (Pty) Ltd, share in the company’s growth across its various assets, including Brandberg West.
The partnership between Andrada Mining and SQM marks a pivotal moment for Namibia’s mining sector, particularly in the field of lithium extraction. The Lithium Ridge asset, with its rich deposits of spodumene, is being positioned as a crucial contributor to the country’s economy as global demand for lithium rises, primarily due to its essential role in renewable energy and battery technologies. The involvement of SQM, a renowned player in the global mining industry, promises to bring significant investment and expertise to the region. This collaboration is expected to facilitate local economic development and enhance the workforce in Namibia, benefiting both the local communities and the broader national economy through job creation and skill development.
In conclusion, the strategic partnership between Andrada Mining Limited and SQM represents a significant advancement in the mining sector of Namibia, particularly regarding lithium development. The planned investment of USD 20 million and the emphasis on local employment and suppliers highlight the commitment to fostering sustainable economic growth in the region. This collaboration not only supports Andrada’s growth objectives but also ensures the inclusion of local communities in the benefits arising from the mining activities, thereby promoting broader socio-economic development.
Original Source: economist.com.na
