SQM, the world’s second-largest lithium producer, has secured approval to partner with Andrada Mining in Namibia to develop the Lithium Ridge asset. This partnership, SQM’s first in Africa, aims to accelerate project development and includes a significant investment of up to $40 million. Andrada will continue to operate the project and may receive fees based on resource success.
Chile’s SQM (NYSE: SQM), the second-largest lithium producer globally, has received regulatory approval from Namibia to establish a partnership with South Africa’s Andrada Mining (LON: ATM) to develop the Lithium Ridge asset. This agreement represents SQM’s inaugural transaction in Africa and aims to expedite the project’s development, situated approximately 35 kilometers from Andrada’s main Uis tin mine. Under this arrangement, SQM holds the option to acquire up to a 50% interest in Grace Simba Investments (GSI), which is Andrada’s subsidiary that owns the Lithium Ridge license.
Andrada’s Chief Executive Officer, Anthony Viljoen, stated that the approval marks a crucial step towards launching what they anticipate will be a transformative partnership. He underscored the far-reaching implications of this collaboration, emphasizing that SQM’s planned investment of up to $40 million will act as a catalyst for both the development of the project and economic growth in the lithium-rich Erongo region. Despite this partnership, Andrada Mining will retain its role as the project operator and will be entitled to a success fee if the lithium resource exceeds 40 million tonnes.
The partnership between SQM and Andrada Mining highlights an important advancement in the lithium sector, particularly in Africa. With this strategic investment and development initiative, both companies are poised to stimulate economic growth in Namibia and enhance lithium production capabilities in the region. This collaboration signifies a new chapter for SQM as it expands its international footprint.
Original Source: www.mining.com
