Andrada Mining says it aims to bolster its revenue stream by 75% through the expansion of its tin production to a targeted 2,600 tonnes per annum (tpa) by the first quarter of 2025 from 1,500 tpa.
According to the company, the expansion will be financed through the Orion Resource Partners tin royalty and will also contribute to a reduction in operational costs, further strengthening its financial performance.
“The expansion of tin production will enable Andrada to align with its royalty obligations, while the commercial production of tantalum will fulfil a supply agreement with Afrimet,” said Andrada’s Chief Executive Officer Anthony Viljoen.
Andrada further states that the time frame allows for the implementation of necessary upgrades and ensures a smooth transition to the increased production capacity.
The expansion plan comes amid a positive outlook for the tin market. By increasing its production capacity, Andrada positions itself to capitalise on this favourable market trend.
Similarly, Andrada has completed the optimisation of its tantalum circuit, targeting initial production of approximately 48 tpa with the potential to increase to 83 tpa after the implementation of the tin ore sorting circuit.
Tantalum revenue is estimated to contribute between 3% and 5% of Andrada’s total group revenue.
Furthermore, Andrada is also setting its sights on lithium production with a focus on petalite, a lithium-bearing mineral, for the glass-ceramics market.
Studies are underway for a full-scale integrated processing plant to produce petalite concentrate alongside tin and tantalum.
Preliminary modelling forecasts production of 30,000 tpa of technical-grade petalite concentrate, with sales anticipated to increase total revenue by an additional 50% to 80%.
“The integration of petalite production will create further value for our shareholders and solidify our position as a key producer in the technology metals industry. Furthermore, we are expediting the metallurgical test work for converting petalite into battery chemicals for long-term supply opportunities,” Viljoen said.
He further explained that the company is actively seeking strategic partnerships to further develop its lithium assets in Namibia.
The company has received non-binding indicative offers and is currently in discussions with potential partners, aiming to secure final binding bids. This approach is expected to accelerate the development of Andrada’s lithium portfolio.
“We are pleased to report significant progress on the strategic process. Discussions with international organisations from within the lithium value chain are advanced. We are encouraged by the level and quality of interest from interested parties,” he said.
