Andrada Mining Limited Collaborates with SQM to Develop Lithium Ridge in Namibia

Andrada Mining Limited has partnered with SQM Australia to develop the Lithium Ridge asset in Namibia. The collaboration aims to enhance local economic activity through job creation and skill development, with SQM potentially investing USD 20 million. As a fully permitted site rich in lithium, tin, and tantalum, this partnership signifies a strong commitment to sustainable mining practices and empowerment of historically disadvantaged communities.

In a noteworthy advancement for Namibia’s mining industry, Andrada Mining Limited has entered into a partnership with Sociedad Química Minera de Chile SA, represented by its subsidiary, SQM Australia, to develop the Lithium Ridge asset. This asset, fully permitted and spanning approximately 3,300 hectares, is positioned around 35 kilometers from Andrada’s primary Uis Mine. The site is enriched with multiple pegmatites that contain lithium, tin, and tantalum mineralization. Under the terms of the agreement, pending approval from the Namibian Competition Commission, SQM will finance exploration activities and conduct a Definitive Feasibility Study, allowing Andrada to concentrate on resource declaration while leveraging SQM’s extensive capabilities. The anticipated investment of USD 20 million over the next three years is expected not only to foster job creation but also to enhance skill development in the region, underscoring SQM’s commitment to nurturing Namibia’s lithium sector amidst the global transition to renewable energy and electric vehicle production. SQM has exhibited a strong track record in Namibia, reflecting an operational ethos that emphasizes local suppliers and workforce inclusion, with 99% of employees being Namibian and 95% of expenditures allocated within the country. Additionally, preceding the partnership with SQM, Andrada took significant steps to bolster its ownership structure by restructuring its Uis Tin Mining Company, having increased its ownership stake from 85% to 100% through the acquisition of a 15% interest from the Small Miners of Uis. The Small Miners of Uis is designed to promote economic development in historical mining regions and has proven to be a vital collaborator in Andrada’s operational success. Furthermore, through the restructuring initiative, Andrada issued shares to Sinco Investments Five (Pty) Ltd, composed of historically disadvantaged Namibians, thereby enhancing its empowerment objectives and ensuring that both the Small Miners and Sinco Investments can capitalize on the company’s growth across its various assets, including Brandberg West.

The article outlines a significant partnership between Andrada Mining Limited and SQM Australia, aimed at developing lithium mining operations in Namibia. Lithium Ridge’s potential can contribute to the growing demand for lithium due to the global shift towards renewable energy solutions and electric vehicles. The partnership is rooted in enhancing local economic activities through job creation and skill enhancement while emphasizing local workforce involvement and expenditure. Furthermore, the restructuring of Andrada’s Uis Tin Mining Company highlights the company’s commitment to empowering historically disadvantaged communities in Namibia, aligning with broader socio-economic development goals.

In conclusion, Andrada Mining Limited’s collaboration with SQM Australia marks a pivotal moment for Namibia’s lithium mining sector. This partnership promises to unlock significant economic benefits through job creation and skills training while sustaining local supplier relationships. Andrada’s proactive restructuring efforts further illustrate their dedication to empowering local communities, ensuring that the benefits of mining extend to those historically impacted by the industry. As the global market increasingly pivots towards renewable energy, investments in lithium assets like Lithium Ridge position Namibia as a key player in this emerging sector.

Original Source: economist.com.na