Andrada Mining and SQM Forge Strategic Partnership to Boost Local Economy
Andrada Mining Limited has partnered with SQM Australia to develop its Lithium Ridge asset in Namibia, facilitating a substantial investment that promotes local economic growth and job creation while enhancing skills within the mining sector. The partnership is characterized by Andrada’s focus on local suppliers and employment, as well as recent restructuring to empower historically disadvantaged groups.
In a noteworthy advancement for Namibia’s mining industry, Andrada Mining Limited has established a partnership with Sociedad Química Minera de Chile SA, through its affiliate SQM Australia. This cooperation aims to facilitate the development of the Lithium Ridge asset, a site of significant mineral wealth, including lithium, tin, and tantalum, within a fully permitted mining license that spans 3,300 hectares near Andrada’s Uis Mine. Under the terms of the agreement—which awaits the endorsement of the Namibian Competition Commission—SQM is poised to invest USD 20 million over the next three and a half years, funding exploration and a Definitive Feasibility Study. This investment will enable Andrada Mining to concentrate on resource declaration while benefiting from SQM’s extensive expertise and financial resources. The infusion of capital and expertise from SQM is anticipated to foster local economic growth through job creation and enhanced skills development within the mining sector. SQM’s commitment exemplifies a long-term vision for the advancement of Namibia’s lithium assets, which are vital for the global transition to renewable energy solutions and electric vehicles. Andrada Mining’s dedication to local employment is reflected in its impressive statistics, with 99% of its workforce comprising Namibians and 95% of its supply expenditure directed toward local suppliers. Prior to solidifying the partnership with SQM, Andrada took strategic steps to bolster its ownership stake in the Uis Tin Mining Company from 85% to 100%, by acquiring the remaining interest held by Small Miners of Uis, an organization centered on supporting local economic development. This strategic restructuring aligns with Andrada’s empowerment objectives, as the company issued listed shares to historically disadvantaged entities, including Sinco Investments Five (Pty) Ltd and Small Miners of Uis. Such initiatives enable these groups to partake in Andrada’s growth across all assets, including Brandberg West, thereby enhancing economic inclusivity and development in the region.
The collaboration between Andrada Mining and SQM represents a crucial advancement in the Namibian mining sector, particularly in lithium extraction, which is increasingly important due to the global shift towards renewable energy and electric vehicles. Andrada Mining’s efforts to enhance local economic activity through job creation and partnerships with local entities underscore the importance of community engagement and sustainable development in the mining industry. With a strategic focus on increasing local ownership and empowerment, Andrada is positioning itself as a leader in responsible mining practices within Namibia.
The partnership between Andrada Mining Limited and SQM Australia holds significant promise for Namibia’s mining sector, aimed at bolstering economic growth, local employment, and skill development. The commitment of both entities to local suppliers and labor marks a progressive step towards sustainable mining practices. Andrada’s restructuring efforts further enhance local participation in the company’s growth, ensuring the community stands to benefit from the development of vital lithium resources.
Original Source: economist.com.na
