Andrada Mining Limited (Andrada) has renewed its off-take agreements with Thailand Smelting and Refining Co. Limited (Thaisarco) and AfriMet Resources AG (AfriMet) for tin concentrate and tantalum concentrate, respectively.
The Thaisarco off-take agreement has been extended for an additional three years, starting from December 1, 2023.
Andrada’s Chief Executive Officer, Anthony Viljoen, said the renewal secures a minimum monthly supply of 90 metric tonnes (mt) and allows for up to 100% of the expanded production.
“The agreement secures off-take of our tin production, allowing management to focus on achieving the Orion royalty tonnage. Importantly, we are proud of the major milestones we have achieved at Uis Mine to date, including the successful expansion of the processing plant and the on-going continuous improvement programme to enhance efficiencies and profitability,” he said.
Meanwhile, the renewal of the AfriMet off-take agreement covers a plant production period of 12 months starting January 1, 2024, with an option to receive advance payment.
Viljoen noted that despite the relatively small tantalum concentrate volumes, the additional revenue will incrementally improve profitability.
He said the production of tantalum adds a second technology metal to Andrada’s product portfolio, marking a positive step towards participating in the green transition.
Andrew Davies, Managing Director of Thaisarco, expressed satisfaction with the renewed off-take agreement, citing a mutually beneficial initial contract.
He highlighted Thaisarco’s readiness to absorb Andrada’s planned increase in production and expressed anticipation of continuing to support the Company’s growth story.
Thaisarco, established in 1963, is globally recognised as an industry leader in the manufacturing of tin, tin alloys, and tin-related products.
“The renewed contract spans three years, from December 1, 2023, to November 30, 2026. Thaisarco has the capacity to absorb the planned increase in tin production in line with the Orion royalty agreement,” said Davies.
He added that the company will supply up to 100% of its production, with a minimum of 90mt per month, and prices will be linked to the London Metal Exchange pricing (after deducting treatment and impurity charges).
Similarly, Hadley Natus, Chief Executive Officer of AfriMet, welcomed the renewal of the tantalum off-take agreement, emphasising the company’s role in strengthening its relationship with Andrada.
AfriMet, a strategic African commodity trading company and a 100% owned subsidiary of Zug (Switzerland)-based VanoMet AG, will absorb all production from the recently commissioned tantalum circuit at Uis Mine.
“Pricing will be linked to Argus Metals and Asian Metals tantalum prices. Andrada also retains the right to elect to receive an advance payment, up to 50% of the cargo value, 30 days prior to the expected delivery date,” said Natus.
