African technology metals mining company Andrada Mining Limited says it is preparing to send its first-ever shipment of tantalum to AfriMet Resources this month.
The move marks a pivotal step in the company’s strategic expansion plans for its flagship Uis Mine in Namibia.
The mining company currently estimates annual production to be around 48 tonnes per annum (tpa) and is projected to rise to 83tpa following the installation of an ore sorting circuit.
“Tantalum revenue is estimated to be between 3% and 5% of total group revenue at steady state production, with more than 90% of the tantalum revenue captured in the mine EBITDA,” the miner said in a market update.
With tantalum being a critical component in various industries, including electronics and aerospace, the successful ramp-up of production could potentially unlock new revenue streams for the company.
Meanwhile, Andrada said it is also advancing its tin and lithium production capabilities. The company is implementing an ambitious expansion project aimed at increasing tin concentrate output from 1,500 to 2,600tpa.
The company plans to do this through the deployment of cutting-edge ore sorting technology and the procurement of essential equipment, such as Metso crushing machinery and Tomra ore sorters.
The miner is poised to boost revenue by up to 75% while simultaneously reducing operational costs.
“The expansion of tin production will enable Andrada to align with its royalty obligations, whilst the commercial production of tantalum will fulfill a supply agreement with Afrimet,” said Andrada Chief Executive Officer, Anthony Viljoen.
Andrada said it is positioning itself to capitalise on the evolving landscape of the lithium market.
The successful operation of the lithium pilot plant since Q4 2023 signifies a critical step towards integrating lithium production into the existing operations at the Uis Mine.
Preliminary modeling indicates an initial production capacity of 30,000tpa of petalite concentrate.
“I am particularly pleased with the potential offered by the lithium production opportunities. In the short-term, we are targeting initial sales of our pilot plant production into the spot glass-ceramics market whilst progressing discussions with potential long-term off-takers across the lithium value chain to access other markets, particularly the battery market,” said Viljoen.
He further explained that the integration of petalite production would generate additional value for shareholders and reinforce Andrada’s position as a prominent producer in the technology metals industry.
Moreover, the company said it would expedite the metallurgical test work for converting petalite into battery chemicals to pursue long-term supply opportunities.
“Exploration drilling programmes are ongoing across all assets to expand the size and scope of the mineral resources. The collaboration between our exploration and metallurgy teams expedites test work in order to facilitate the transition of projects from exploration to development and, ultimately, production,” Viljoen said.
It is also reported that the mining giant’s strategic process is gaining momentum, having attracted keen interest from leading international organisations within the lithium value chain with partnership development efforts spearheaded by Barclays Bank PLC.
“We are pleased to report significant progress on the Strategic Process. Discussions with international organisations from within the lithium value chain are advanced. We are encouraged by the level and quality of interest from interested parties,” Viljoen said.-miningandenergy.com.na
