SQM Partners with Andrada Mining for Namibian Lithium Development

SQM has secured regulatory approval to partner with Andrada Mining in Namibia for the development of the Lithium Ridge asset. This deal allows SQM to acquire up to a 50% interest in the project, marking the company’s first venture into Africa. The partnership is expected to catalyze economic growth in the Erongo region, supported by an investment of up to $40 million.

Chile’s SQM, the world’s second largest lithium producer, has attained regulatory approval in Namibia to move forward with an earn-in agreement with South Africa’s Andrada Mining. This collaboration aims to jointly develop the Lithium Ridge asset, marking SQM’s entry into the African market. The project is situated approximately 35 kilometers from Andrada’s primary Uis tin mine. As per the agreement, SQM can acquire up to a 50% stake in Grace Simba Investments, the subsidiary managing the Lithium Ridge license.

Andrada Mining’s chief executive, Anthony Viljoen, expressed optimism regarding the approval. He remarked that it represents the final step necessary to officially initiate the partnership, which is anticipated to be significantly transformative. Furthermore, Viljoen articulated the broader implications of the investment, which amounts to up to $40 million from SQM and is expected to drive project development and stimulate economic growth in the lithium-abundant Erongo region of Namibia.

While Andrada will continue to oversee the project operations, the agreement stipulates that the company will receive a success fee should the lithium resource surpass 40 million tonnes. This arrangement highlights the forward momentum in both the lithium market and economic collaboration in southern Africa.

In summary, SQM’s agreement with Andrada Mining represents a significant step in lithium production expansion into Africa, specifically through the development of the Lithium Ridge asset in Namibia. The projected investment is poised to foster economic growth in the Erongo region, while the partnership enables SQM to solidify its presence in the African market. Furthermore, the potential success fee underscores the ambitious goals set by both companies in this venture.

Original Source: www.mining.com