Afritin Mining secures N$100m to revive Uis Town
• Business Reporter
London listed AfriTin Mining has secured a N$100 million loan from the Development Bank of Namibia (DBN) to boost production at its Uis tin mine to a million tonnes per year.
The dusty town of Uis, about 135km away from Arandis, will get another lease of life after South Africa’s owned Iscor, developed the world’s largest had rock tin in the world until the depressed tin prices forced the closure of the mine in 1990.
The money, to be repaid over 10 years, will also be used to improve processing efficiency and reduce unit costs while creating jobs in excess of a 100 people during the first phase of oprations.
“We are pleased to announce the headline terms for a proposed lending facility with the Development Bank of Namibia,” said AfriTin Chief Executive Anthony Viljoen.
“This new strategic financing partnership reinforces our commitment to developing long-term relationships within Namibia and ultimately will be to the benefit of the people of Namibia. A long-term financing partnership with the Development Bank of Namibia also facilitates further financing options that drive the growth and expansion of the entire project.”
Under the terms of the loan, there will be no interest or capital repayments for the first 12 months. Thereafter, interest accrues at the Namibian prime lending rate, which is currently 8.
5%, plus 2.5%.
“Although the lending facility has been approved by the credit committee and board of the Development Bank of Namibia, there are certain conditions precedent that need to be adhered to, including completion of final legal documentation. At this stage, there can be no guarantee the lending facility will be entered, or that any money will be drawn down, but the AfriTin management and the Development Bank of Namibia have every confidence that it will be,” he said.
The ongoing Uis Phase 1 Stage II continuous improvement project includes increasing the crushing capacity of the fines crushing section to ensure consistent feed to the concentrator, as well as removing potential delays that may affect production.
“The loan is in line with our developmental objectives and we are hopeful and optimistic that it will help with the revival of Uis Town,”said DBN CEO Martin Inkumbi in an interview with Confidente.
“Our main objective as an institution is to contribute to the economic growth, social development and sustainable welfare of Namibia and its people. We look forward to working with AfriTin and Uis Tin Mining Company,” Inkumbi said.
The DBN funding comes after the Alternative Investment Market-listed miner in April announced that it had increased its Standard Bank working capital facility by N$40 million (£2 million) to N$75 million to buffer the increased capacity against any unexpected disruptions in global supply chains or shipping delays.
AfriTin Mining says it expects to generate over N$33.5 billion in revenue in the next five years from the expansion of its Uis mine in Namibia.
The company’s internally produced preliminary economic assessment (PEA) for the Phase 2 expansion of the company’s flagship Namibian mine, indicates a significant yearly cash flow with rapid payback of 1.5 years from an open pit tin, lithium and tantalum mine.
AfriTin Mining Limited is an African tech-metals mining company with a portfolio of mining and exploration assets in Namibia and is dual-listed on the Namibian Stock Exchange.
*Additional reporting The Brief