AFRITIN aimed to increase production from the first phase of its Uis project in Namibia by 50% following an optimisation study which also planned mining lithium ore in order to generate by-product revenue.
The first phase optimisation plan, which was interrupted by COVID-19 related lockdown regulations in Namibia, will ultimately lead to a second phase expansion that will see AfriTin supply about 1% of the world’s tin supply.
Based on its financial evaluation, optimising phase one of the project will produce a net present value of $122m and an internal rate of return of as much as 60%, the company said in an update on Tuesday.
Anthony Viljoen, CEO of AfriTin, said in a statement that the company was no longer affected by lockdowns and was therefore resuming full activity. There had been interruptions, however.
“We have not been immune to the disruptions caused by the lockdowns and have experienced delays in the supply chain from Namibia and South Africa,” he said.
“This disruption has impacted the optimisation process, but activity levels have now returned to pre-lockdown levels and the ramp up is steadily increasing month-on-month towards design capacity.” A fourth shipment of tin had been dispatched to customers.
AfriTin announced in May that it had raised £2.05m in loan notes in order to “further secure” the firm’s finances amid the COVID-19 pandemic. The debt has been raised with Yellow Dragon, a subsidiary of The Orange Trust, which has a 9.9% stake in AfriTin.