Andrada facing electricity quandary at Uis mine

…approaches NamPower to increase electricity supply

Andrada Mining is navigating significant electricity supply challenges at its Uis Mine, prompting the company to approach Namibia Power Corporation (NamPower) for an increase in electricity supply.

Currently, the combined electricity demand of Uis Mine and surrounding residential areas is met by an existing feeder. However, as Andrada plans for future growth, the estimated demand for mining and processing ore is projected to rise from 2 MVA (Mega Volt Ampere) to approximately 6 MVA over the coming years. In response, the company has submitted an application to NamPower to increase the supply on the current line to 5 MVA, which would accommodate much of the anticipated demand.

Looking ahead, Andrada is exploring renewable energy solutions to address its long-term electricity needs. The company is studying the integration of solar and battery installations, which can be expanded modularly to align with growth. Several renewable energy companies have expressed interest in collaborating with Andrada for the construction and management of these installations. The next phase will involve shortlisting potential partners for detailed design and implementation.

The overall electrical power demand for future mining and processing operations, including necessary infrastructure, is estimated to reach approximately 40 MW, necessitating an installed capacity of around 50 MVA.

Andrada’s Uis Mine, licensed under ML 134, spans approximately 19,700 hectares and is rich in mineral resources including lithium, tin, tantalum, and rubidium. The dominant lithium mineral present is petalite, with 180 pegmatites identified so far. The company has confirmed a resource of 138 million tonnes from just two pegmatites, V1 and V2, and aims to define a total resource of 200 million tonnes.

In addition to electricity, water consumption at Uis Mine is closely linked to production levels. The current processing operation employs a combination of dry and wet processing methods, requiring approximately 150 litres of water per tonne of ore processed. This water is sourced from groundwater wells within a three-kilometre radius of the plant. Plans are underway to expand both the number of wells and the size of the well field, with sustainability modelled by independent consultants to ensure the long-term viability of the groundwater supply.

Notably, the groundwater in the area has high salinity levels, rendering it unsuitable for human or livestock consumption. As such, Andrada’s operations do not compete with local agricultural or community water needs. The existing water supply is expected to meet operational demands for several years, but future large-scale expansions will necessitate sourcing desalinated water from coastal plants.

As Andrada Mining continues to address these challenges, the company remains focused on its growth trajectory and the sustainable development of its Uis Mine.

Last week, the company released its operational update for the second quarter and the first six months of the 2025 financial year, both ending 31 August 2024.

Ore processed in Q2 FY2025 increased by 5% to 243 528 and by 8% in H1 FY 2025 to 481 504 YoY. The ore mined was blended to improve ore utilisation whilst maintaining a grade in line with the reserve statement. The feed grade will continue to be maintained within the range of 0.135% to 0.145% tin, the company says.

The plant processing rate in Q2 FY2025 was slightly lower at 130 tonnes per hour (tph), compared to 138 tph in Q2 FY2024 and 134 tph in Q1 FY2025, mainly due to enhanced maintenance implemented on the crushing circuit during the arter. Consequently, the combination of the lower feed grade and processing rate resulted in the marginal decrease in tin concentrate production to 388 tonnes (Q2 FY2024: 398 tonnes). Although the resulting contained concentrate production to 388 tonnes (Q2 FY2024: 398 tonnes). Although the resulting contained tin tonnage in Q2 FY2025 was essentially flat YoY at 239 tonnes (Q2 FY2024: 238 tonnes), the tonnage for the six-month period was 2% higher than the comparative period at 462 tonnes (H1 FY2024: 454 tonnes).

Anthony Viljoen, Chief Executive Officer, commented: “We continue to improve operational performance as we optimise processes, as indicated by the higher plant utilisation rates and contained tin tonnage. The exposure of the higher-grade ore at Uis has enabled us to expedite the lithium bulk-sampling campaigns. We are extremely pleased with the initial commercial sale of petalite concentrate that validates the value of Uis’s lithium mineralisation. Furthermore, the ongoing testwork will inform the lithium integration circuit studies while securing the off-take agreements for the petalite concentrate. Importantly, the steady-state production and sale of tantalum concentrate has firmly established Andrada as a critical metals’ global supplier. The continued support from our lenders, as demonstrated by the finalisation of the Bank Windhoek funding agreement, is an endorsement of our ability to implement and achieve our strategic objectives. Finally, the high-profile partnership announced earlier this month with SQM on Lithium Ridge alongside the recent drilling results at Brandberg West truly confirm the high-quality nature of our resource portfolio and the exciting opportunity at Andrada.”

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