Diversified battery metals explorer, Arcadia Minerals, says it is not affected by the Namibian government’s decision to ban the export of unprocessed lithium and other critical minerals, as it plans to construct a processing plant in the country.
The company, which is developing the Swanson tantalum project, is constructing a gravity plant to produce a tantalum concentrate.
Arcadia Minerals stated that tantalum is not considered a ‘critical’ mineral in Namibia.
“The company has no intention of exporting unprocessed crushed ore, and it has no plans to do so in the near future. As the transaction with Hebei illustrates, Hebei will construct a Multi Gravity Separation Plant at its cost and execute mine development of the Swanson project up to a steady state of production for 3 months, in return for a 38% equity interest in the project. The MGS plant is being constructed to produce a tantalum concentrate, which involves the processing of raw ore,” the company said on Thursday.
Through an earlier announced transaction, Hebei will construct a plant and execute mine development and commissioning of a multi-gravity separation plant (MGS).
“We are very pleased with the progress Hebei is making at advancing the Swanson tantalum/lithium project towards production. Since signing our deal with Hebei, construction has already commenced, and work is accelerating both on-site and around equipment receipt/ordering,” said Arcadia chairman Jurie Wessels.
“At the site, roads are already being constructed, and earthworks around the plant location will commence shortly. Equipment such as the jaw crusher, cone crusher, feeder, screen, and conveyors have been ordered or are en route. Long lead items, such as the drilling machine, ball mill, and crushers, have also been ordered. The balance of equipment, particularly the gravity plant equipment, is expected to be finalized before the end of July.”
The plant is designed to receive around 20,000 tonnes of feed per month, with production expected by the first quarter of 2025.
Based on results from a recent definitive feasibility study, capital costs are estimated at N$187 million (A$14.8 million) to support a run-of-mine production rate of 12,500 t a month over an eight-year mine life.
The study estimated a post-tax net present value of N$194 million (A$15.36 million), an internal rate of return of 25.4%, a pay-back period of just over three years, and life-of-mine earnings before interest, taxes, depreciation, and amortization of N$611 million (A$48.35 million).
