Chamwe Kaira
Tin producer Andrada Mining Limited has secured a N$48 million advance under an expanded exclusive offtake agreement with Thailand Smelting & Refining Co. Ltd (Thaisarco).
Andrada announced that its wholly owned subsidiary, Uis Tin Mining Company (Proprietary) Limited (UTMC), has extended its existing offtake agreement with Thaisarco, first signed in November 2023.
Under the new terms, Thaisarco will advance US$3 million, about N$48 million, to UTMC. The advance is unsecured and interest-free. It is repayable at UTMC’s discretion, except in specific default situations. The funds are expected to be received this week.
In return, Thaisarco has been granted exclusive rights to purchase all tin concentrate produced by UTMC during the term of the agreement.
The exclusivity covers all tin concentrate produced at the Uis Mine processing facilities in the Erongo region. This includes material from the Uis mining licence area and approved third-party feedstock, subject to certain commercial limits.
UTMC may sell additional tin concentrate to third parties only with Thaisarco’s consent.
Pricing will continue to reference the London Metal Exchange tin price. A minor marketing discount will apply on a sliding scale.
The N$48 million advance is structured as a prepayment against amounts owed or to become owed under the original offtake agreement. Repayment remains at UTMC’s sole discretion, except in cases of a change of control or legislative changes that materially affect its ability to supply.
The agreement includes an early voluntary redemption option within the first two years, subject to 90 days’ written notice. This would require repayment of the N$48 million plus a 30% redemption fee.
A further voluntary redemption option applies on the second anniversary of the agreement and on any later anniversary date, subject to 60 days’ written notice and repayment of the N$48 million advance.
Mandatory redemption will apply in the event of a change of control or legislative changes that materially affect supply.
Andrada chief executive officer Anthony Viljoen said the extension reflects the partnership between the two companies, UTMC’s performance at Uis and rising global demand for tin.
He said the agreement provides operational flexibility as the company increases production to benefit from strong commodity market conditions.
Viljoen said Thaisarco’s decision to strengthen the relationship shows the importance of the Uis operation in the global tin market and confidence in Andrada’s ability to expand output.
Thaisarco, established in 1963, is an integrated tin producer that manufactures tin, tin alloys and related products for international markets.
