Andrada Mining Limited has met all conditions required to access N$98 million in loan facilities from Bank Windhoek and the Development Bank of Namibia (DBN), clearing the way for funding to support the expansion of its Uis Tin Mine in the Erongo Region.
The development follows Andrada’s announcement in May that it had secured the financing, subject to the fulfilment of certain conditions.
The funding comprises two equal N$49 million loan facilities from Bank Windhoek and DBN, each with a 10-year tenure. Andrada expects to draw down the funds within five to 10 days.
The financing will be used to construct and commission an ore-sorting circuit at Uis and upgrade the mine’s crushing and screening sections as the company moves to increase production and processing efficiency.
Andrada Chief Executive Officer Anthony Viljoen said meeting the conditions allows the company to move ahead with execution of the expansion.
“The strengthening of the collaboration with two of Namibia’s leading financial institutions has enabled Andrada to complete the funding required to materially de-risk the delivery of the Uis ore-sorting expansion,” Viljoen said.
“The Company can now continue to move decisively into project execution mode to further unlock the mine’s operational and cash-generating potential through increased throughput and processing efficiency.”
Andrada expects the ore-sorting expansion to increase tin concentrate production by between 50% and 70%, from approximately 1,800 tonnes a year to between 2,500 and 3,000 tonnes annually.
The increased output is expected to translate into annual contained tin production of between 1,500 and 1,900 tonnes.
Andrada has appointed Intagrey (Pty) Ltd to fabricate, construct and commission the modular ore-sorting plant, while Consulmet (Africa) Limited will undertake upgrades to the mine’s crushing and screening sections.
Viljoen said the appointment of the two engineering firms had allowed early works to proceed while the company worked to meet the conditions attached to the financing.
Andrada said project execution is already under way, with equipment fabrication progressing and key contractors appointed.
The expansion is aimed at removing processing bottlenecks at Uis, increasing throughput and improving the mine’s overall operating efficiency.
