AIM-listed Andrada Mining has renewed the offtake agreements with Thailand Smelting and Refining Co (Thaisarco) and AfriMet Resources AG for supplying tin and tantalum products from the Uis Tin Mine.
Andrada, which is developing the Uis Tin Mine in the Erongo region, also owns the Uis Lithium Project, Nai-Nai Lithium Ridge, the Spodumene Hill for tantalum and tin, as well as the Brandberg West for tin and tungsten.
The agreement with Thaisarco, established in 1963, is for three years, while the AfriMet one is for one year.
Thaisarco smelts and refines tin ores and manufactures tin alloys and related products.
AfriMet Resources AG is a strategic African commodity trading company 100% owned Zug (Switzerland) subsidiary that trades metals and minerals sourced from Africa, especially tin, tungsten and tantalum. The company also trades copper, cobalt, gold, zinc and lead from Africa.
Thaisarco’s offtake agreement, signed initially in 2020, entails that Andrada will supply a minimum of 90 metric tonnes of tin per month and up to 100% of the expanded production.
The AfriMet initial agreement signed on 15 February 2021 entails that Andrada will supply AfriMet tantalum from the Uis Tin Mine.
In return, AfriMet would pay Andrada a payment calculated by reference to the amount of tantalum pentoxide contained in the tantalum concentrate at a price in US$ per/lb of the average of the Argus Metals tantalum price and Asian Metals tantalum price for the two months before the expected delivery date, less a deduction of US$1 per/lb.
The agreement also stated a 90% provisional payment should be made upon presentation of original export documents.
According to the agreement, the final 10% payment and any quality adjustments are paid upon finalisation of the assay and weights by the receiving third party.
Andrada may elect to receive an advance payment 30 days before the expected delivery date to 50% of the expected cargo value based on the agreed price for the scheduled delivery. The limit on the advanced payments is US$500,000.
Andrada CEO Anthony Viljoen said the relationship with Thaisarco has been extremely successful.
Viljoen also said the agreement secures offtake of the tin production, allowing management to focus on achieving the Orion royalty tonnage.
He further said the renewal of the tantalum offtake agreement with AfriMet secures Andrada’s all tantalum production and, despite the small tantalum concentrate volumes, the additional revenue will incrementally improve profitability.
Thaisarco managing director Andrew Davies said as a major smelter, they are well-positioned to absorb Andrada’s planned increase in production.
AfriMet CEO Hadley Natus said the renewal of the tantalum offtake agreement with Andrada is a positive step in strengthening our relationship.
“While the initial contract was not activated, we remain confident in our partnership and look forward to working with Andrada to supply the specialist tantalum market,” Davies said.
