In a significant development for Namibia’s mining sector, Andrada Mining Limited recently agreed with Sociedad Química Minera de Chile SA through its subsidiary, SQM Australia, to collaborate on the development of Andrada’s Lithium Ridge asset in the Uis district.
According to a statement issued by the Chamber of Mines of Namibia, Lithium Ridge is a fully permitted mining license covering an area of approximately 3,300 hectares and located approximately 35km from Andrada’s flagship Uis Mine. The mine hosts multiple pegmatites with mineralization including lithium, tin and tantalum.
As part of the agreement, which is subject to approval from the Namibian Competition Commission, SQM will fund the exploration as well as a Definitive Feasibility Study, ensuring that Andrada can focus on declaring a resource while benefiting from SQM’s vast resources.
SQM’s potential investment of US$20 million over the next three and a half years will contribute directly to local economic activity creating jobs and enhancing skills in the sector, signifying the company’s long-term commitment to develop the country’s lithium assets, which will be essential in the global shift to renewable energy and electric vehicles.
Moreover, before concluding the SQM partnership, Andrada restructured its Uis Tin Mining Company to increase its ownership interest from 85% to 100%, by acquiring the 15% interest held by Small Miners of Uis.
In addition, the restructuring also furthered Andrada’s empowerment goals as the company issued its listed shares to Sinco Investments Five representing historically disadvantaged Namibians and the Small Miners of Uis. The restructure therefore enables the Small Miners of Uis and Sinco Investments to benefit from the company’s growth across all its assets including Brandberg West.
