AfriTin Mining Limited (LON:ATM) has signed a deal with Namibia Power over grid electricity for the pilot plant at the Uis tin mine.
The grid supply is significantly more cost-effective than the diesel-generators currently on site, said the AIM-listed junior.
An 800-metre power line and substation will be built for the grid connection to coincide with the anticipated production ramp-up of the processing plant.
"This agreement will provide reliable energy to site, improve the planned cost structure and further support the economic viability of our project," said Anthony Viljoen, chief executive.
The phase 1 processing plant is designed to process around 500,000 tonnes of ore per annum and produce 60 tonnes of tin concentrate per month.
Namibia Power will supply up to 1.5MVA over ten years at standard list prices for transmission customers.