The Namibian Competition Commission has granted approval for the earn-in agreement between Andrada Mining and Sociedad Química y Minera de Chile SA (SQM), through its subsidiary, SQM Australia (Pty) Ltd. This approval was the final outstanding condition for the agreement’s implementation.
Under the terms of the agreement, SQM has the right to earn up to a 50% interest in Grace Simba Investments (Pty) Ltd, a wholly owned subsidiary of Andrada Mining (Mauritius) Limited, which holds the Lithium Ridge licence.
The commission’s unconditional approval clears the way for the three-stage earn-in agreement for Lithium Ridge, and the formation of the Joint Development Committee for Grace Simba Investments to begin.
As part of the agreement, SQM will pay Andrada a US$1.5 million participation fee balance. Over the next 18 months, SQM will invest US$7 million in Grace Simba Investments in exchange for a 30% interest at the end of Stage 1.
Andrada Mining CEO, Anthony Viljoen, describes the approval as a pivotal step in launching a transformative partnership with one of the world’s largest lithium chemicals producers. He adds that this agreement will significantly accelerate their lithium-to-market strategy.
According to Viljoen, SQM’s investment of up to US$40 million will not only fast-track the development of the spodumene-rich Lithium Ridge but also foster socio-economic growth in Namibia’s Erongo region.
The partnership is expected to create both direct and indirect employment opportunities, enhance local skills development, and strengthen local procurement of goods and services.
“With this approval secured, our exploration team is ready to begin the first phase of the agreement. This is a key milestone in our journey to becoming a leading African producer of critical raw materials,” Viljoen says.
SQM CEO, Mark Fones, calls the approval a milestone in expanding their lithium asset portfolio and reinforcing their commitment to the global energy transition.
“We are delighted that the Namibian Competition Commission granted approval for our earn-in agreement. With all conditions met, we are now set to begin exploration at Lithium Ridge,” Fones concludes.
