Andrada Mining Limited has partnered with SQM Australia to develop its Lithium Ridge asset in Namibia. With a funding pledge of USD 20 million, the partnership aims to enhance local employment and skills in the mining sector. The deal follows Andrada’s acquisition of full ownership of the Uis Tin Mining Company, reinforcing its commitment to local economic development and community empowerment.
In a noteworthy advancement for the mining industry in Namibia, Andrada Mining Limited has entered into a strategic partnership with Sociedad Química Minera de Chile SA, operating through its subsidiary, SQM Australia. This collaboration is centered around the development of Andrada’s Lithium Ridge asset, an area that spans 3,300 hectares and is located approximately 35 kilometers from its flagship Uis Mine. The Lithium Ridge site is rich in essential minerals, including lithium, tin, and tantalum, providing an important resource for both local and global markets. The signing of this agreement, pending approval from the Namibian Competition Commission (NaCC), paves the way for SQM to finance exploration activities and conduct a Definitive Feasibility Study. This arrangement will allow Andrada to concentrate on resource declarations, leveraging SQM’s extensive expertise and financial capabilities. Notably, SQM has pledged an investment of USD 20 million over the next three and a half years, which will stimulate local economic development by creating employment opportunities and enhancing skill development within the mining sector. SQM’s commitment is indicative of its long-term strategy to advance Namibia’s lithium resources, playing a crucial role in the transition towards renewable energy and electric vehicle production. Since entering the Namibian market, the company has emphasized initiatives that prioritize local suppliers, with 99% of its workforce being Namibian and 95% of procurement expenditures directed within the country. Prior to formalizing the partnership with SQM, Andrada took significant steps to strengthen its operations by acquiring the remaining 15% interest in the Uis Tin Mining Company, consolidating its ownership from 85% to 100%. This change involved the Small Miners of Uis entity, which is integral to aiding the economic growth of local communities in historically mining-centric regions. Furthermore, the restructuring aligns with Andrada’s commitment to empowerment, as the company has allocated listed shares to Sinco Investments Five (Pty) Ltd and Small Miners of Uis, representing historically disadvantaged Namibians. This move allows these stakeholders to partake in the benefits of Andrada’s growth across its various assets, including Brandberg West.
The partnership between Andrada Mining and SQM represents a significant development not only for the companies involved but also for the broader economic landscape of Namibia. The focus on lithium processing is timely, given the global shift towards renewable energy solutions. Lithium has emerged as a critical component in the production of batteries for electric vehicles and other technologies, making the understanding and development of local lithium deposits essential for future energy strategies. The emphasis on local employment and procurement reflects a growing trend within mining operations to contribute positively to the communities in which they operate, ensuring that local populations benefit from resource extraction.
In conclusion, Andrada Mining’s collaboration with SQM marks a significant milestone for both the company and Namibia’s mining sector. The focus on lithium production aligns with global energy trends, while the investment and restructuring efforts show a commitment to local economic empowerment and sustainability. This partnership not only enhances resource development but also strengthens the economic fabric of the communities involved, showcasing the potential benefits of responsible mining practices.
Original Source: economist.com.na
