Production at Lotus Resources Limited’s Kayelekera Uranium Mine is expected to resume early next month after completion of acid plant remediation works, nearly a month after operations were temporarily suspended.
The Australian Securities Exchange-listed company, which operates the mine in Karonga District, halted production last month due to disruptions in the third-party acid supply chain linked to geopolitical tensions in the Middle East, as well as repairs required at the mine’s acid plant.The repairs became necessary after commissioning of the acid plant was interrupted by the failure of refractory bricks within the sulphur furnace shortly after the facility achieved first acid production.
In an update published on its website, Lotus Resources said the repairs had been completed and production would restart in early August.
The company said: “Interim furnace repair works have now been completed and final commissioning activities will resume once procured acid supply is reinstated.
“The company has begun to replenish its acid supply, with deliveries starting to arrive on site and more anticipated by the end of July 2026.
“This acid supply will enable both the acid plant and processing plant to be restarted in early August 2026 and is expected to provide sufficient volumes until such time that the acid plant will be fully commissioned.”
When announcing the suspension last month, Lotus said the disruption would delay its production ramp-up and affect its ability to meet initial uranium supply commitments.
“At present, Lotus has obligations to deliver 1.01 million pounds of uranium in 2026. Given the limited ability to deliver into those offtake obligations, Lotus continues to engage with its customers to defer delivery of a significant proportion of those deliveries into 2027,” the company said.
Meanwhile, Lotus has secured a $30 million funding agreement with Mercuria Energy Group to support production at Kayelekera. Under the deal, Mercuria will also market three million pounds of Lotus’ uranium over a 30-month period.
According to Lotus, the funding will provide additional working capital flexibility to advance the Kayelekera project. The agreement is being documented and is expected to be finalised within two months.
The company previously signed a four-year uranium sales agreement with American power utility company Curzon for the purchase of 600 000 pounds of Kayelekera uranium between 2026 and 2029. It now has four binding uranium sales agreements covering up to 3.8 million pounds.
Geologist Ignatius Kamwanje said the funding and offtake agreements were a major boost for Malawi’s economy.
“We should look at it in terms of employment creation as production ramps up, improved infrastructure development, especially in Karonga, and increased foreign exchange earnings once the mine achieves full operation and steady-state production,” he said.
Mining expert Grain Malunga earlier said progress at Kayelekera could significantly increase the mining sector’s contribution to Malawi’s gross domestic product (GDP).
Lotus has revised its production ramp-up schedule, with steady-state production now expected in the fourth quarter of this year instead of early 2026. Once fully operational, the mine is expected to produce about 2.4 million pounds of uranium annually.
In July 2024, Lotus signed a mining development agreement with the Malawi Government, granting the State a 15 percent stake in the project.
