Andrada has signed a six-month secured loan agreement with LCA for $2.5 million to purchase a 100-ton-per-hour tin concentrate production facility. This expansion will enhance output while maintaining current operations, allowing Andrada to explore additional high-grade tin resources in Namibia’s Erongo region.
Enhancing Tin Processing Capabilities
The new facility features a three-stage primary crushing and screening circuit, a jigging section, and shaking tables. It will process various tin ore grades, producing output identical to the tin concentrate generated by the existing processing facility.
This modular plant will operate separately from the main processing building, ensuring smooth production expansion without disrupting ongoing operations. The plant will extract value from stockpiles obtained from the proximal pegmatites at Uis and higher-grade ore from regional mines. However, despite discussions with miners in the Erongo region, securing long-term tin ore supply contracts remains uncertain.
Also read: Tower Resources Secures Farm-Out Deals in Namibia and Cameroon
Strategic Financial Decision
Management determined that a shareholder loan was the most effective financing solution to accelerate the tin expansion strategy. This approach provides the speed and flexibility needed to fast-track the plant’s construction, increasing tin production capacity.
CEO Anthony Viljoen highlighted the company’s confidence in Namibia’s rich tin deposits and Andrada’s strategic position in global supply chains.
“We anticipate a surge in tin demand over the coming year. With Andrada’s strong foothold in the industry, this expansion gives us a competitive edge,” said Viljoen.
Polymetallic Growth Strategy
Andrada continues to expand tantalum and lithium production while assessing additional mining regions. By leveraging the polymetallic potential of its ore body, the company aims to boost cash flow and improve profit margins, reinforcing its commitment to scalable and sustainable growth.
This latest investment underscores increasing confidence in Andrada’s long-term strategy, positioning Namibia as a key player in the evolving global tin market.
