Andrada Mining Limited has partnered with SQM Australia to develop the Lithium Ridge asset in Namibia. This collaboration involves an estimated USD 20 million investment aimed at enhancing local economic activity through job creation and skills development. The partnership also emphasizes local employment and suppliers, contributing to the region’s overall economic growth and sustainability within the mining sector.
In a notable advancement for Namibia’s mining industry, Andrada Mining Limited has entered into a partnership with Sociedad Química Minera de Chile SA (SQM) via its subsidiary SQM Australia. This collaboration aims to develop Andrada’s Lithium Ridge asset, which consists of a fully permitted mining license that spans approximately 3,300 hectares and lies near the flagship Uis Mine. The Lithium Ridge hosts various pegmatites that are rich in lithium, tin, and tantalum. As part of the agreement, pending approval from the Namibian Competition Commission (NaCC), SQM is set to invest in exploration activities and conduct a Definitive Feasibility Study. This strategic investment will enable Andrada to concentrate on resource declaration while benefitting from SQM’s extensive resources. The potential investment, estimated at USD 20 million over the next three and a half years, is expected to enhance local economic initiatives by creating jobs and developing skills in the mining sector. This investment aligns with both companies’ commitment to advancing lithium assets, which are integral to the renewable energy transition and electric vehicle production. Throughout its operations in Namibia, SQM has prioritized local engagement, with 99% of its workforce composed of Namibians and 95% of its supply expenditure directed toward local businesses. Before finalizing its partnership with SQM, Andrada restructured its Uis Tin Mining Company to increase its ownership share from 85% to 100% by securing the 15% stake held by Small Miners of Uis. This entity is key to stimulating economic growth in mining regions and has played an essential role in the success of the Uis Mine and Andrada’s licensing endeavors. Furthermore, the restructuring supports Andrada’s empowerment objectives, as the company issued listed shares to historically disadvantaged entities, including Sinco Investments Five (Pty) Ltd and Small Miners of Uis. Consequently, this restructuring allows both parties to participate in the company’s growth across all its assets, including Brandberg West.
The partnership between Andrada Mining and SQM represents a vital step in the development of lithium resources in Namibia, a country with significant potential in the mining sector. The Lithium Ridge asset, with its favorable location and resource abundance, has drawn interest from major mining companies, positioning Namibia as a critical player in the global lithium supply chain. Additionally, the focus on local employment practices and community engagement aligns with broader economic development goals, emphasizing sustainable growth in the region’s mining industry.
In conclusion, the partnership between Andrada Mining and SQM marks a significant milestone for Namibia’s mining sector, particularly in the development of lithium resources. With a commitment to local economic growth, job creation, and sustainability, the collaboration not only supports Andrada’s operational goals but also enhances the skillset and economic prospects for Namibians. The moves made by Andrada, including restructuring and community involvement, pave the way for a more inclusive and prosperous mining industry in Namibia.
Original Source: economist.com.na
