Lotus Resources Limited has temporarily stopped production at Kayelekera Uranium Mine in Karonga citing a disruption in the third-party acid supply chain linked to Middle East geopolitics and acid plant repair works.
The company said in a statement yesterday that before the stoppage, it delivered improved processing plant performance with May production of 73 600 pounds of uranium driven by optimisation initiatives and operational enhancements, up from 47 300 pounds in April.
Reads the statement: “Lotus has utilised the supply of third-party acid in the Kayelekera processing plant since the restart commenced, while its acid plant is commissioned.
“Unfortunately, the ongoing geopolitical tensions in the Middle East are adversely impacting the availability, reliability and cost of sulphur and sulphuric acid. The disruptions are now culminating in several contracted and prepaid deliveries being delayed or not fulfilled.”
Subject to acid supply and funding, steady-state production is now expected later this year, while logistics arrangements and final transport permitting for uranium shipments from Kayelekera continue to progress, according to the statement.
In an earlier interview, geoscience expert in minerals, mining and metals Ignatius Kamwanje said the progress at Kayelekera Mine was impressive and a major boost to the economy as it is poised to improve the sector’s contribution to gross domestic product (GDP).
Before Kayelekera Uranium Mine closed in 2014 for care and maintenance in the wake of dipping global uranium prices, the mining sector contribution to the gross domestic product stood at 10 percent, but over the years, the contribution has dropped to below one percent.
Lotus Resources Limited currently has four binding sale arrangements of up to 3.8 million pounds of uranium.
In July 2024, Lotus Resources Limited signed a mining development agreement with the Malawi Government which, among others, saw Lilongwe owning 15 percent stake in the mine.
Mining, alongside agriculture, tourism and manufacturing are touted as key drivers to spur Malawi’s economic growth.
