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A landmark agreement has been struck, positioning Namibia as a key player in the burgeoning global lithium market. Chilean mining giant SQM, the world’s second-largest lithium producer, has secured regulatory approval to join South Africa’s Andrada Mining, forging a partnership to develop the promising Lithium Ridge asset.
This deal, SQM’s inaugural foray into the African continent, is set to accelerate the development of the Lithium Ridge project, a site located a mere 35 kilometres from Andrada’s established Uis tin mine. The agreement grants SQM the option to acquire a 50% stake in Grace Simba Investments (GSI), Andrada’s subsidiary holding the crucial Lithium Ridge license.
Andrada’s chief executive, Anthony Viljoen, hailed the approval as the “final component” needed to launch a “transformative partnership.” He emphasized that SQM’s planned investment of up to $40 million will expedite project development and stimulate economic growth within Namibia’s resource-rich Erongo region.
The deal signifies a major vote of confidence in Namibia’s geological potential, with Lithium Ridge holding the promise of becoming a significant source of lithium, a critical component in electric vehicle batteries and renewable energy storage.
While SQM will bring its considerable financial muscle and technical expertise to the table, Andrada Mining will retain operational control of the project. A further incentive for Andrada is the potential for a substantial success fee, should the lithium resource exceed 40 million tonnes.
The partnership represents a significant step forward in Namibia’s efforts to diversify its mining sector and capitalize on the growing demand for battery minerals. As the world transitions towards a greener future, deals such as this will play a vital role in securing the supply of critical resources and solidifying Namibia’s position on the global stage
