Tin concentrate production reaches new heights in Namibia
Andrada Mining produced record levels of tin concentrate in both Q4 and the financial year (FY2023), at its Uis Mine, Namibia.
The company, formerly AfriTin Mining, achieved a record quarterly production of 361 tonnes of tin concentrate. This comes after operating their expanded processing plant for the first uninterrupted quarter. With the upgraded plant allowing greater amounts of ore to be processed, along with improving tin recoveries, tin-in-concentrate production for the quarter reached 214 tonnes, breaking the mine’s previous record by over 40%.
The results from the final quarter have helped facilitate a record year of tin production in FY2023. Despite a five-week shutdown of the plant in Q3 as the processing plant was being upgraded, high levels of production throughout the year were able to make up for the losses. Tin concentrate production during the financial year rose 19% year-on-year to 960 tonnes – containing some 586 tonnes of tin. The plant processing rate, as well as the feed grade and recovery rates, were all up year-on-year.
By increasing production through large-scale bulk mining, Anthony Viljoen, CEO, commented the company “has made excellent progress in realising the significant economies of scale inherent” at Uis. The lowest ever quarterly all-in-sustaining costs (AISC) were reported in FY2023Q4 at US$ 18,236 per tonne of contained tin. Over the entire year, the AISC fell 9% to US$ 24,939 year-on-year.
The company is now conducting a drilling campaign on the mining license to validate historical drill information and increase confidence in overall tin resources at the Proximal Pegmatites. The drill information will also provide greater detail on lithium and tantalum mineralisation. “We believe these economies of scale and the bringing online of lithium production, will rapidly enhance the value of this outstanding asset over the coming months.” Anthony continues.
Andrada has been able to ramp up production to beyond the processing plant’s nameplate capacity of 100 tonnes per month of tin concentrate. This has had a dramatic effect on the AISC, with costs in Q4 over 30% less than before the increase in production, and lower than the current LME price.
the company expects tin production for FY2024 to surpass this year, as the capacity of the upgraded plant can be utilised; Andrada expects concentrate output to be between 1,400-1,500 tonnes.
LME Tin price has rallied sharply, along with other base metals, from a low of $22,225 in mid-March, hovering just under $26,000 today. The banking crisis triggered a new round of macroeconomic volatility, weakening the dollar. Tin supply remains in surplus in China but is tightening elsewhere, with LME stocks down and price moving into backwardation.
Tin will have a crucial role in enabling a sustainable global energy transition and digitalisation over the next decade according to the findings of TIN2030, ITA’s new strategic report on the sector.
