Andrada Mining CEO Anthony Viljoen says expanding tin production at the Uis Tin Project will enable the company to meet its royalty obligation, increase revenue by up to 75%, and reduce the all-in-sustaining costs.
After implementing an ore sorting circuit, the company has said that tin concentrate production will increase from 1.500 to 2.600 tpa.
The Orion Resources Partners facility fully funds the ore sorting circuit, which augments the Continuous Improvement II programme funded by the Development Bank of Namibia.
The company also said it was procuring Metso crushing equipment and Tomra ore sorters.
Andrada Mining also said the optimisation of the tantalum circuit has been completed and that the first shipment of concentrate to Afrimet Resources is targeted for March 2024.
The ore-sorting circuit will increase the annual tantalum production to about 83 tpa from the current 48 tpa, bringing revenue to about 3% and 5% of total group revenue.
Viljoen says Andrada will be able to fulfil its supply agreement with Afrimet.
According to Andrada Mining, the lithium pilot plant has consistently produced technical grade petalite concentrate since the fourth quarter of 2023, and the concentrate stockpile is accumulating.
Preliminary modelling indicates an initial production of 30,000 tpa from 1.7 million tonnes per annum Run-Of-Mine of technical grade petalite concentrate.
Viljoen says in the short term, the company will target initial sales of the pilot plant production into the spot glass-ceramics market whilst progressing discussions with potential long-term offtakers across the lithium value chain to access other markets, particularly the battery market.
“While Andrada focuses on achieving its ultimate goal of unlocking the scale potential of its deposits, the short-term goal of maximising revenues from current operations remains key to providing free cash flow for the organisation whilst simultaneously derisking the flow sheet,” Viljoen says.
According to Viljoen, integrating petalite production will create further shareholder value and solidify Andrada Mining’s position as a key producer in the technology metals industry.
He said exploration drilling programmes are ongoing across all assets to expand the size and scope of the mineral resources.
“The collaboration between our exploration and metallurgy teams expedites testwork to facilitate the transition of projects from exploration to development and, ultimately, production,” he says.
