Last checked at 
(Sharecast News) - Andrada Mining announced significant advancements in its expansion plans for lithium, tin, and tantalum production at the Uis Mine in Namibia on Tuesday, alongside updates on its strategic process.
The AIM-traded firm, formerly known as AfriTin Mining, said that In the realm of tin production, it was implementing an ore sorting circuit to boost tin concentrate output from 1,500 to 2,600 tonnes per annum.
That expansion was supported by the procurement of Metso crushing equipment and Tomra ore sorters.
Funding for the ore sorting initiative had been secured through the Orion Resource Partners facility, complementing the 'Continuous Improvement II' programme funded by the Development Bank of Namibia (DBN).
The board said the expansion was forecast to amplify revenue by up to 75% while further reducing the all-in sustaining costs (AISC) of mining operations.
In tantalum production, the optimisation of the tantalum circuit had been finalised, with the first concentrate shipment to Afrimet Resources scheduled for March.
Current production estimates stood at about 48 tonnes per annum, expected to rise to 83 tonnes per annum after the implementation of the ore sorting circuit.
Tantalum revenue was anticipated to constitute between 3% and 5% of total group revenue, with a significant portion captured in mine EBITDA.
Regarding lithium production, Andrada reported consistent production of technical grade petalite concentrate since the fourth quarter of 2023.
Initial sales were targeted towards the specialty glass and ceramics market, which offered a premium compared to the battery market.
Additionally, ongoing development test work aimed to cater to the lithium battery market.
Studies were underway to integrate the entire lithium circuit into current operations, with preliminary modelling indicating an initial production of 30,000 tonnes of technical grade petalite concentrate per annum from a 1.7 million tonnes-per-annum run-of-mine.
Andrada said its lithium marketing strategy aimed to secure market share across the lithium value chain.
In terms of strategic endeavours, Andrada said it had received indicative, non-binding offers for a partnership interest at the lithium project level.
Discussions with potential partners were progressing positively, the board said, as the company looked to further enhance its operations and market presence.
"While Andrada focusses on achieving its ultimate goal of unlocking the scale potential of its deposits, the short-term goal of maximising revenues from current operations remains key to providing free cashflow for the organisation, whilst simultaneously derisking the flow sheet," said chief executive officer Anthony Viljoen.
"The expansion of tin production will enable Andrada to align with its royalty obligations, whilst the commercial production of tantalum will fulfil a supply agreement with Afrimet.
"I am particularly pleased with the potential offered by the lithium production opportunities."
Viljoen said that in the short-term, the firm was targeting initial sales of its pilot plant production into the spot glass-ceramics market while progressing discussions with potential long-term offtakers across the lithium value chain to access other markets, particularly the battery market.
"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 testwork for converting petalite into battery chemicals for long-term supply opportunities.
"Exploration drilling programmes are ongoing across all assets to expand the size and scope of the mineral resources."
The collaboration between Andrada's exploration and metallurgy teams expedited testwork, Anthony Viljoen explained, to facilitate the transition of projects from exploration to development and, ultimately, production.
"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."
At 1535 GMT, Andrada Mining shares were down 6% at 4.7p.
Reporting by Josh White for Sharecast.com.
