Chile’s SQM enhances its global footprint in lithium by entering an agreement with Andrada Mining to develop the Lithium Ridge asset in Namibia. This marks SQM’s initial engagement in Africa, with plans to invest up to $40 million to accelerate project development. The partnership is expected to foster economic growth in the Erongo region.
Chile-based SQM (NYSE: SQM), the world’s second-largest lithium producer, has obtained approval from Namibian authorities to engage in an earn-in agreement with South African firm Andrada Mining (LON: ATM) to collaboratively develop the Lithium Ridge asset. This development marks SQM’s inaugural venture into Africa, aiming to facilitate rapid advancement of the project, situated approximately 35 kilometers from Andrada’s principal Uis tin mine.
As part of the agreement, SQM may acquire up to a 50% interest in Grace Simba Investments (GSI), which is Andrada’s subsidiary responsible for holding the Lithium Ridge license. Anthony Viljoen, Chief Executive of Andrada, indicated that this approval is crucial for the two companies to embark on a transformative partnership.
Mr. Viljoen underscored the significant implications of this agreement, specifically noting SQM’s planned investment amounting to $40 million, which is anticipated to drive not only the project’s progression but also economic growth within the lithium-abundant Erongo region. Andrada Mining is set to retain its role as the project operator and may receive a success fee contingent upon the lithium resource surpassing 40 million tonnes.
In summary, SQM’s partnership with Andrada Mining represents a significant step in the development of lithium resources in Namibia. The collaboration is poised to advance the Lithium Ridge project while contributing to economic growth in the region, backed by a robust investment from SQM. This venture marks a notable expansion for SQM as it enters the African market, aiming to enhance its global lithium footprint.
Original Source: www.mining.com
