SQM has received approval to partner with Andrada Mining in Namibia to develop the Lithium Ridge asset, its first venture in Africa. The agreement allows SQM to acquire up to a 50% stake in Andrada’s subsidiary, with a planned investment of up to $40 million expected to boost project development and regional economic growth.
Chile’s SQM, recognized as the world’s second-largest producer of lithium, has secured approval from Namibian authorities to pursue an earn-in agreement with Andrada Mining, based in South Africa. This partnership aims to jointly advance the Lithium Ridge asset, marking SQM’s inaugural venture into Africa. The Lithium Ridge project is strategically situated about 35 kilometers from Andrada’s prominent Uis tin mine.
Under the terms of the agreement, SQM has the option to acquire up to a 50% interest in Grace Simba Investments (GSI), the subsidiary of Andrada holding the Lithium Ridge license. Anthony Viljoen, the CEO of Andrada Mining, expressed that this approval represents a vital step toward launching a transformative collaboration. He added that SQM’s anticipated investment of up to $40 million is expected to act as a significant catalyst for the development of the project and the ensuing economic growth in the lithium-abundant Erongo region.
Andrada Mining will continue to serve as the project’s operator throughout its development and will also receive a success fee contingent upon the lithium resource surpassing 40 million tonnes.
In summary, SQM’s partnership with Andrada Mining represents a significant step in expanding its operations into Africa, particularly in Namibia. The agreement not only allows for joint development of the strategic Lithium Ridge asset but also promises substantial economic benefits through investment and potential resource yield. This collaboration is anticipated to enhance the project’s development timeline and greatly contribute to the regional economy.
Original Source: www.mining.com
