Andrada taps global lithium giant SQM to unlock Namibian potential
Value chains
The joint venture with the world's largest lithium producer aims to fast-track the development of the Lithium Ridge asset, positioning Namibia as a key player in the African lithium market.
Ogone Tlhage and Augetto Graig
Andrada Mining says it is keen to advance lithium mining in Namibia and unlock economic opportunities following a partnership agreement signed with Sociedad Química y Minera de Chile SA (SQM) to develop its Lithium Ridge asset, its CEO, Anthony Viljoen, said.
Viljoen made the comments on the fringes of the recently concluded Chamber of Mines of Namibia conference, and said the partnership agreement signed with SQM was a significant milestone for Andrada.
“A significant milestone is also our partnership with SQM on Lithium Ridge. Lithium Ridge is a very good prospect for lithium spodumene, and we have a joint venture relationship with SQM now, which is fantastic. They are the biggest lithium miners in the world, and I think the partnership will unlock a lot of value for the project and for Namibia.
“Then there is Brandberg West, which is our third asset. We have completed a drilling programme there, so we’re growing and the portfolio is growing, and it is exciting times for our development,” Viljoen said of the company’s partnership.
Viljoen had previously hailed the SQM partnership, saying it aligned with Andrada’s strategic objectives, enabling it to develop its lithium assets and accelerate exploration initiatives.
Building bridges
“The terms of this agreement establish a long-term, value-creating relationship that incentivises operational milestones and delivers sustained returns for our shareholders. The introduction of a substantial player in the global lithium market will also place Namibia at the forefront of the African lithium development trajectory and unlock value for the Namibian mining industry,” he was quoted as saying.
In 2023, Andrada successfully commenced production of lithium concentrate from the pilot plant at its Uis operations. Furthermore, the company advanced exploration across its asset portfolio during the year, which delivered significant results through encouraging drill intersections at Lithium Ridge.
Lithium Ridge is a fully permitted mining licence covering an area of approximately 3 300 ha and located about 35 km from Uis Mine. It hosts multiple pegmatites with mineralisation including lithium (spodumene dominant), tin and tantalum.
“What we are looking to do now is integrate lithium production into the plant, so we have been busy doing studies to enable that. Then, very significantly on Lithium Ridge, is the exploration programmes that we are undertaking with SQM, which I think will unlock a lot of value on the lithium side as well,” Viljoen said.
Tin
Another positive for Viljoen was an improvement in tin production achieved for the first quarter of 2025. Ore processed during the quarter totalled 254 745 tonnes, representing a 7% increase year-on-year (y/y) and a 4% increase quarter-on-quarter (q/q).
The improvement was driven by plant enhancements implemented under Andrada’s continuous improvement 2 programme, Viljoen noted.
“A very important one is that we have increased our production, which is good. We have had several initiatives at the mine in terms of getting better efficiencies from the mining perspective, and we are excited about that,” he said.
The deal entered into with SQM would help anchor the company’s growth going forward, Viljoen said. “This lays the platform to what we keep maintaining is a growth and expansion base for the company and a very exciting agreement all round.”
The deal entered into with SQM also demonstrated the work Andrada had carried out, unearthing value in its assets.
“This asset was sitting on a balance sheet of US$2 million (N$35 million), and this deal values the asset quite substantially, so it does show that there is a lot of value in the work we do,” Viljoen said.
“It has taken a little longer in some instances, but we are at the cusp of that exponential growth curve that we keep talking about and establish ourselves as a mid-tier critical resources producer,” he added.
Fast-track
SQM’s partnership would also help accelerate the development of lithium and other rare earth metals in Namibia, Viljoen said.
“This will massively accelerate our lithium development strategy and the depth of knowledge that SQM brings. They are one of the biggest lithium producers globally, and it will help accelerate and unlock the lithium value a lot quicker. This lays the platform for an expansion of the development of the lithium and critical raw materials potential in Namibia,” Viljoen said.
SQM is the world’s biggest lithium producer currently and is listed on the New York Stock Exchange.
Andrada currently has four projects underway in Namibia, including the Uis tin mine, which is delivering significant by-product deposits of lithium and tantalum.
The Lithium Ridge project targets the same minerals, covers 3 300 hectares and is located about 35 km from the Uis mine; while Spodumene Hill, targeting lithium, tin and tantalum, covers a 4 900-hectare licence area and falls within 15 km of the Uis mine.
Brandberg West, a largely under-explored area, covers 35 000 hectares and targets tin, tungsten and copper.