Hong Kong Xinhai Mining Services has completed its technical review of Arcadia Minerals’ Swanson Tantalum Mine in Namibia, with negotiations progressing towards a definitive funding and development agreement as the project moves closer to production.
Reflecting a significant recovery in tantalum prices, Xinhai has prepared draft definitive terms that align with the improved market conditions. Meanwhile, Arcadia is also engaging European Development Finance Institutions and potential strategic partners under the European Union’s Global Gateway for Raw Materials initiative to explore alternative financing and development options.
Tantalum prices have seen a dramatic increase, with market prices for 25% tantalum pentoxide concentrate rising from around US$90 per pound in October 2025 to approximately US$200-210 per pound by March 2026. Additionally, China Tantalum is trading above US$225 per pound for 30% concentrate. This strong pricing environment significantly enhances the economic outlook of the Swanson project, as tantalum price is the most sensitive factor in the mine’s 2023 Definitive Feasibility Study.
The feasibility study highlights that fluctuations in tantalum prices have the greatest impact on the project’s net present value and internal rate of return. However, Arcadia notes that operational and capital costs from the 2023 study have yet to be updated, and a new Definitive Feasibility Study will be prepared if needed.
The Swanson Tantalum Mine is fully permitted and construction-ready. Arcadia is pursuing financing structures that enable the project to enter production while minimizing upfront capital expenditure and limiting shareholder dilution. The company believes that both the ongoing discussions with Xinhai and engagement with European development financiers could help achieve this goal.
Arcadia cautions investors that there is no certainty current negotiations with Xinhai or other funding partners will culminate in definitive agreements. The company commits to providing updates as discussions progress.
