Lotus Resources Limited, a firm that owns 85 percent stake in Kayelekera Uranium Mine in Karonga, has produced its first yellow cake, a powdered uranium concentrate with 90 percent uranium oxide.
Mining experts say this is a key step to boosting the country’s mining contribution to gross domestic product (GDP) from the current 0.7 percent.
In an update posted on the firm’s website, Lotus Resources Limited said the production is a key final step in the successful commissioning of the processing plant as it expects to increase production in first quarter of 2026.
Reads part of the statement: “We can now commence sending our yellowcake to the converters for qualification. Samples are expected to be dispatched in the coming weeks.
“While these qualification and account reopening processes are finalised, we will continue to focus on ramping up production and building inventory in anticipation of our first uranium shipment later this year.”
Lotus Resources Limited managing director Greg Bittar is quoted in the update as having said the milestone positions the mining firm to join the ranks of global uranium producers.
He said: “This terrific milestone signifies the first production since the mine was put on care and maintenance in 2014 and Lotus is delighted to be making such progress at what is a crucial time for the global uranium market.
“Achieving this milestone on budget and within the timeline of third quarter in 2025 targeted at the beginning of Kayelekera’s accelerated restart is a testament to the quality and dedication of Lotus’ team, contractors and all stakeholders.”
In a separate interview, mining expert Ignatius Kamwanje described the restart of Kayerekera mine as a major boost to the economy saying this will improve mining contribution to GDP.
He said: “Before Kayelekera was closed in 2014, mining sector contribution to GDP was at 10 percent, but it dropped to just above one percent.
Chamber of Mines and Energy national coordinator Grain Malunga said they expect the mining sector’s contribution to GDP to grow to 12 percent by 2027 when Kayerekera and other two mines are in full operation.
“We expect the mining sector contribution to GDP to be not less than 12 percent in two years’ time when three projects, Lindian Resources Limited’s Kangankunde, Globe Metals’ Kanyika Mine and Kayerekera Mine are fully operational,” he said.
Lotus Resources Limited currently has four binding sale arrangements for up to 3.8 million pounds of uranium.
Mining, alongside agriculture, tourism and manufacturing are touted as key drivers to spur Malawi’s economic growth.
Lotus Resources Limited in July last year signed a mining development agreement with the Malawi Government which, among others, saw Lilongwe owning 15 percent stake.
President Lazarus Chakwera officially commissioned operations at mine in Karonga on August 12 this year.
