SQM, the second-largest lithium producer globally, has entered into a $40 million agreement with Andrada Mining to develop the Lithium Ridge asset in Namibia. This marks SQM’s first foray into Africa, reinforcing its commitment to growing its presence in the lithium market. The partnership is anticipated to foster project advancement and economic growth in the region.
SQM, a prominent Chilean lithium producer, has secured approval from regulatory authorities in Namibia for a collaboration agreement valued at up to $40 million with Andrada Mining, based in South Africa. This partnership represents SQM’s inaugural venture into the African continent, aimed at joint development of the Lithium Ridge asset, conveniently located approximately 35 kilometers from Andrada’s primary Uis tin mine. Under the terms of this agreement, SQM is entitled to purchase up to a 50% interest in Grace Simba Investments (GSI), the subsidiary of Andrada that manages the Lithium Ridge license.
Anthony Viljoen, the CEO of Andrada, remarked that regulatory approval is pivotal to fully activate what he anticipates will be a transformative collaboration. He further emphasized that SQM’s significant investment of $40 million is poised to enhance both the project’s progression and stimulate economic prosperity within the lithium-rich Erongo region of Namibia.
Andrada Mining will maintain operational control of the project and stands to gain a success fee should the lithium resource surpass 40 million tonnes. However, the company’s shares fluctuated, decreasing by 2.4% to £2.03 ($2.56) during trading in London, which positioned Andrada with a market capitalization of approximately $43.7 million. Over the past year, shares have experienced a trading range between $2.39 and $6.98.
In summary, SQM has initiated its first African partnership through a significant $40 million investment agreement with Andrada Mining to develop the Lithium Ridge asset in Namibia. The venture is expected to advance project development and bolster economic growth in the region. The successful establishment of this collaborative effort under Andrada’s operational oversight underscores the potential impact of lithium resources on the local economy.
Original Source: www.northernminer.com
