Lotus Resources Limited produced 332 000 pounds (about 151 tonnes) of uranium from Kayelekera Mine in Karonga in its first year, falling short of planned production ramp-up due to plant and sulphuric acid supply challenges.
According to the company’s 2026 annual report, the mine, which produced its first uranium concentrate in November 2025, targeted production of 200 000lb (about 91 tonnes)per month by May 2026.
“The transition from first production to sustainable operations was impacted by a range of factors, including processing plant performance and reliability challenges, disruptions due to sulphuric acid supply,” reads the report in part.
Lotus said the challenges delayed exports, revenue and cash flow while increasing operating costs.
However, managing director Greg Bittar said operational improvements were beginning to strengthen production performance while product acceptance by Orano Chimie-Enrichissement created a pathway for future exports.
“While production remained below our long-term expectations, the improvement reflected strengthening reliability, maintenance execution and processing performance and provided evidence that the operational initiatives implemented during the year were delivering,” he said.
Looking ahead, the company remains optimistic based on increasing global demand for nuclear energy which continues to push uranium prices from $84.85 (K148 220) per Ib in 2026 to approximately $95.50 (K167 572) per lb in 2027.
Chamber of Mines and Energy president Maxwell Kazako described the progress as commendable despite the mine’s reliance on diesel-generated power.
He said: “The challenges are huge. Both economic and administrative looking at the impact of the political decisions affecting the mining sector.”
On his part, mining expert Paul Mvula said the challenges were concerning but remained optimistic that production could stabilise, noting Kayelekera’s potential to contribute significantly to Malawi’s economy.
In the second quarter this year, Lotus temporarily stopped production at Kayelekera, citing a disruption in the third-party acid supply chain linked to Middle East geopolitics and acid plant repair works.
Mining’s contribution to gross domestic product has fallen from about 10 percent before Kayelekera closed in 2014 to below one percent.
