Namibian tin producer Andrada Mining has made a significant move into the lithium market with its inaugural sale of five tonnes of petalite, valued at over N$70,000. This transaction, completed with a ceramic producer, marks a crucial milestone for the company as it aims to establish itself as a key player in the critical metals sector.
Petalite is a lithium aluminum silicate mineral (more simply a lithium feldspar) that is commonly used in clay bodies. It is valuable because it provides an insoluble source of lithium.
The sale, which occurred during the period ending August 31, 2024, is seen as an endorsement of the commercial viability of petalite sourced from the Uis region. Andrada Mining has emphasized that while the sale is relatively small, it reflects the growing interest in lithium and its derivatives, particularly in the context of the increasing demand for electric vehicle batteries and other high-tech applications.
The company has reported that the recent exposure of high-grade ore at Uis, following an accelerated push-back, has led to increased production of petalite bulk samples. These samples are vital for potential off-takers as Andrada continues to explore opportunities to sell concentrate produced at the site.
“Our lithium pilot plant continues to provide critical information for potential off-take agreements and for the integration of the lithium production circuit into the current plant,” stated a company representative. This pilot facility is primarily utilized for off-take bulk sampling campaigns, which are essential for demonstrating the suitability of Uis’s ore for the global technical grade market.
Andrada Mining is also advancing its metallurgical test work program, aimed at unlocking the full potential of its petalite production project. The completion of a technical study will further support the integration of the lithium circuit into the existing processing plant at Uis, paving the way for future growth in this burgeoning market.
Meanwhile, Andrada told investors, in last Thursday’s interim results statement, that it has made significant progress in the field and through a value-accretive restructuring.
Results for the six months ended 31 August showed a 22% increase in revenue to N$248 million, whilst gross profit improved 70% to £2.6 million and its operating losses narrowed by 42% to £1.5 million.
Besides the restructuring of the UTMC (Uis Tin Mining Company) vehicle, which Andrada said created opportunities for more rapid asset development, the company improved mining volumes in the period.
Andrada highlighted operational milestones including the production of 462 tonnes of contained tin and 25 tonnes of tantalum concentrate.
“Recent results from the maiden drilling programme at Brandberg West confirmed significant mineralisation within the historical pit, and the extensions to the north. The exceptionally high-grade veins have added tungsten and copper to our portfolio of critical minerals. Ongoing drilling at Uis will enhance our understanding of various pegmatites and enable us to increase the resource. We plan to expand our mineralisation exploration programme across the Erongo region to identify potential assets for future expansion. Our goal is to position Andrada as a platform for production growth in critical raw materials within Namibia. In addition to these operational advances, we have improved our operational safety culture and strengthened relationships with our communities. In H2 2025, we look forward to achieving key milestones regarding the SQM deal, petalite development and tin expansion. We also look forward to providing further material updates on the various ongoing initiatives,” CEO Anthony Viljoen said.
The ‘Continuous Improvement Programme’ elevated recovery rates to 72% while plant utilisation also improved to 92%, up from 81% in the same period last year.
Viljoen further noted: “The company ramped up tantalum concentrate production, producing 25 tonnes and shipping 15 tonnes to our off-taker, AfriMet, by the end of the period.
“To support ongoing capital expansion programmes related to tin and lithium development, on 7 August 2024 the Company announced the conclusion of the N$175 million (c. £7.5 million) financing package from Bank Windhoek through our subsidiary, UTMC. The proceeds were primarily allocated to the retirement of existing facilities, growth initiatives, and working capital. This investment will not only benefit UTMC but also contribute to the overall economic development of the country. Management believes that the combination of the Bank Windhoek funding, income from tin and tantalum sales, and proceeds from the post-period agreement with SQM provides sufficient liquidity to support all operational activities for the next 12 months.
“Furthermore, the Company is engaging with potential strategic partners, potential off-takers, development agencies and debt providers for funding required to roll out further capital projects that have been identified. The available cash on 31 August 2024 was N$140 million (US$7.2 million), excluding N$48 million undrawn facilities,” Viljoen said.