Andrada Mining Limited has partnered with SQM to develop the Lithium Ridge asset in Namibia, with a potential investment of USD 20 million to stimulate local economic activity and job creation. This partnership aims to leverage SQM’s resources while Andrada focuses on declaring the lithium resource. The initiative reflects a commitment to empowering local communities through enhanced employment opportunities and increased local spending.
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) and its subsidiary SQM Australia to further develop the Lithium Ridge asset. As reported by the Chamber of Mines of Namibia, Lithium Ridge is a fully permitted area of approximately 3,300 hectares, situated around 35 kilometers from Andrada’s flagship Uis Mine and rich in minerals such as lithium, tin, and tantalum. Under the partnership agreement, which awaits approval from the Namibian Competition Commission, SQM is poised to invest USD 20 million over the next three and a half years to support exploration and a Definitive Feasibility Study. This collaboration allows Andrada to concentrate on resource declaration while leveraging SQM’s extensive knowledge and resources. The investment is expected to stimulate local economic development, create jobs, and enhance skills in the mining sector, aligning with the global transition towards renewable energy and electric vehicles. SQM has a proven track record in Namibia, emphasizing a local-first approach, as evidenced by a workforce comprised of 99% Namibians and 95% of supply expenditures made within the country. Prior to finalizing the SQM agreement, Andrada successfully restructured its Uis Tin Mining Company to increase its ownership from 85% to a full 100% by acquiring the remaining stake held by Small Miners of Uis (SMU). The SMU was established to promote economic growth among Namibians in previously mining-dominated regions and has played a significant role in the successful operations of the Uis Mine. Additionally, Andrada’s restructuring has fulfilled its empowerment objectives by issuing company shares to Sinco Investments Five (Pty) Ltd, which represents historically disadvantaged Namibians, along with the Small Miners of Uis. This strategic move allows these stakeholders to derive benefits from the company’s growth across all its projects, including Brandberg West.
The partnership between Andrada Mining and SQM signifies a robust investment in Namibia’s emerging lithium sector, indicating a broader trend towards the utilization of renewable resources. With lithium being a critical component in batteries for electric vehicles, the enhancement of local mining capabilities directly aligns with international demands for sustainable energy solutions. The restructuring of the Uis Tin Mining Company, alongside dedicated local investment strategies, underscores Andrada’s commitment to community development, workforce empowerment, and the sustainable advancement of the mining industry in Namibia.
In conclusion, the collaboration between Andrada Mining Limited and SQM marks a significant investment into Namibia’s lithium resource development. This initiative promises to enhance local economic activity, bolster job creation, and contribute to the global transition towards renewable energy. Furthermore, Andrada’s structural changes within its Uis operations illustrate a dedication to empowering local communities and fostering sustainable mining practices within Namibia.
Original Source: economist.com.na
