Namibia: tin production is increasing, but its processing remains done abroad.

Namibia is looking to enhance the added value generated by its mining sector, but the tin sector is still largely focused on exporting ore or concentrate. Andrada Mining, which operates the Uis mine, announced on August 17 that it had finalized obtaining loans totaling 98 million Namibian dollars, or about 6 million US dollars.

This public funding is intended to support the company’s activities and increase its tin production. However, the available information does not detail the allocation of funds or the exact schedule for the associated investments.

A transformation strategy that does not yet cover tin

The Namibian government wants to increase the proportion of mineral exports that have undergone processing within the country. The goal is to rise from the current 46.6% to 57% by 2030.

This direction aims, in particular, to reduce the country’s dependence on exporting raw materials and to develop industrial activities related to mining extraction. However, the processing of tin is not an immediate priority of this policy, according to available information.

The Uis mine, regarded as Namibia’s leading tin operation, continues to ship its production to a Thai smelter. The country does not yet have a local capacity to process this metal on an industrial scale.

This situation limits the share of value captured by the Namibian economy after extraction. It also exposes the sector to transportation costs, the capabilities of foreign smelters, and fluctuations in international demand.

Andrada focuses on increasing production

The funding obtained by Andrada comes as the company seeks to develop its operations at Uis. The British firm relies on this former mining area to gradually increase its tin production and structure an industrial activity around the site.

The granting of Namibian dollar loans allows the company to mobilize resources within the country, but it does not change, at this stage, the location of the production processing. The concentrate from the mine still needs to be processed outside of Namibia.

The amount of 98 million Namibian dollars is approximately 6 million US dollars, based on the exchange rate provided. The precise terms of the loans, including their duration, cost, and any associated guarantees, have not been detailed in the available information.

The Namibian strategy for local processing could, therefore, initially benefit sectors that already have suitable infrastructure. For tin, the construction or installation of local smelting capacity would require additional investments, as well as a sufficient production volume to ensure the economic viability of such an activity.