Andrada Mining expects to complete its lithium bulk-testing pilot facility in June and forecasts tin production to increase in 2023 as a result of the plant expansion.
“The lithium pilot plant project is progressing to schedule, with the completion of construction targeted for June 2023. The project is approximately 60% complete with all long lead equipment ready for shipment to the mine. The major plant equipment is being manufactured off-site and the earthworks have been completed. The tantalum circuit construction is approximately 50% complete and on track for full completion in June 2023,” the company said, adding that several early revenue options are being evaluated such as potential output of a lithium concentrate from the lithium bulk-testing facility.
This comes as the AIM-listed mining company, formerly known as AfriTin Mining Ltd., produced 361 metric tonnes of tin concentrate in the three months ended 28 February, from 145 tonnes in the prior quarter.
This brought the fiscal-year total to 970 tons of tin concentrate, up from 780 a year prior and exceeding the nameplate production target of 720 tons.
“This double-digit increase was achieved despite the requisite plant shutdown that resulted in 35% loss of production in the third quarter FY 2023. Production capacity has increased by approximately 70% because of the expansion programme. The significantly higher tonnage output reduced operating costs and AISC by 12% and 9% respectively YoY, confirming the view that large scale bulk mining at Uis is amenable to favourable economies of scale.”
The company guided for tin production of between 1,400 and 1,500 tonnes in fiscal year 2024 due to its plant expansion ramp-up.
“We have made excellent progress in realising the significant economies of scale inherent in this uniquely large ore body. We believe these economies of scale and the bringing online of lithium production, will rapidly enhance the value of this outstanding asset over the coming months,” Andrada’s Chief Executive Officer Anthony Viljoen said.
The company said significant progress had been made towards fulfilling the precedent conditions for the Orion and the Development Bank of Namibia financing.
“The conditional finance arrangements for Orion and Development Bank of Namibia, previously announced on 5 July 2022, 15 September 2022, and 17 November 2022, have been combined into a single legal workstream to reduce the timeline to financial closure. The Company still expects to complete the process by the end of May 2023. “
Meanwhile, Andrada has appointed Chris Smith as Chief Operations Officer, taking over from Frans Van Daalen, who has been appointed to lead the business development strategy as the CSO from February 2023, both are non-board positions. Andrada is an African technology metals mining company with a portfolio of mining and exploration assets in Namibia.
