Andrada leads lithium race

The Uis tin mine is now leading the lithium race and is way ahead of anyone in Namibia in terms of producing tantalum.On 18 July, owners Andrada Mining Limited announced raising US$10 million (almost N$180 million) from existing and new investors on the London Stock Exchange for ongoing capital expansion programmes related to lithium and tantalum development.According to chief executive officer Anthony Viljoen, the money will also provide working capital for its ongoing exploration programme and a lithium feasibility study "to further consolidate its competitive lithium advantage with the Erongo Region of Namibia. These developments underpin the director’s belief that Andrada is well-positioned to be a significant supplier of technology metals globally and to be the first AIM-listed lithium producer," he said in a statement.The Andrada vision is to create a portfolio of globally significant, conflict-free production and exploration assets.Economies of scaleAlong with its flagship Uis mining licence, ML134, it already boasts ML133 at Nai Nais, known as Lithium Ridge, and ML129 at B1C1, known as Spodumene Hill. It also has exploration licence EL5445 in Brandberg West, where more tin, as well as copper and tungsten, can be found. Within the next five years, it plans to delineate 200 metric tonnes of mineral resource targets. "The substantial mineral resource potential allows the company to consider economies of scale," Andrada explained. Recent highlights include the commissioning of a first-in-Namibia lithium bulk sampling plant as well as a tantalum production circuit. The aggressive expansion is propped up by double year-on-year first quarter tin concentrate production of 359 tonnes, which was announced on 26 June.In the same breath, a 42% increase in contained tin volume compared year on year was announced, up to 216 tonnes, and achieved below expected costs.Notably, Andrada has improved its safety performance in terms of injury-free working hours. "We are pleased with the significant efficiencies achieved with the increased production of tin concentrate and the lower-than-expected cash cost increases quarter-on-quarter. We are committed to keeping costs within the lower range of our guidance. The completion of the tantalum circuit will introduce the initial by-product and enable Andrada to fully harness the additional revenue," Viljoen said."Finally, in securing the funding from DBN, we are confident that we have made significant strides in completing the requisite steps to drawdown the funds in July. The combination of the DBN funding, operational cash flows and the outcome of the strategic process will enable us to expedite the development of the lithium revenue stream."Milestones achievedAchievements in producing tin have been dwarfed in significance by the incredible progress made in the race to exploit Namibian lithium.Andrada has made reports of the first ready-for-sale bulk lithium concentrate from its ore, produced by South African mineral processing specialists Bond Equipment through dense medium separation and consisting of 85% pure petalite at a grade of 4,16% Li2. This petalite concentrate is being tested by potential industrial off-takers and for conversion to lithium carbonate and lithium hydroxide. The commissioning of its own on-site bulk-sampling pilot plant in July took the development further."The milestones achieved during the quarter have laid the necessary foundation for the accelerated growth we expect for the balance of the financial year. We have demonstrated the ability to produce saleable lithium concentrate. The completion of our on-site bulk-sampling plant remains on track for completion this month and will expedite the metallurgical test work required to bring lithium revenues on-stream. The ongoing strategic process to identify a partner for the lithium development is going well and will transform Andrada from being a fledging developer to a fully-fledged miner of technology metals. We have been encouraged by the level of interest from potential lithium partners globally and are confident of being able to conclude an attractive transaction for shareholders and broader stakeholders this year," Viljoen said.

Andrada leads lithium race

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Republikein 2024-11-22

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Andrada leads lithium race

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