The environmental and social impact assessment (Esia) study for Kayelekera Uranium Mine restart is critical for the project’s target of connecting to the national electricity grid, the investor and others have said
In a statement on Tuesday, Lotus Resources Limited, the owners of the mine in Karonga District said it is currently undertaking studies to facilitate the restart of the mine which has been in care and maintenance since 2014.
Reads the statement in part: “To receive an environmental authorisation, Esia must be prepared and submitted to the Malawi Environmental Protection Agency [Mepa].”
Meanwhile, the Dhamana Consulting and C12 Consultants, the two companies contracted for the task, expressed readiness to hold stakeholders engagements with the public where concerns on the possible environmental effects of the project could be raised.
The mine’s restart is believed to be one of the lowest capital cost uranium projects globally, with an eight to 10 month timeline to first uranium production and initial restart capital expenditure of $50 million (about K87 billion).
In an interview, geologist Grain Malunga said the Kayerekera Esia information is already available from the initial project of Paladin Africa but there is a need to assess some emerging environmental risks that might have emerged from 2014.
He also noted that the fresh study will also assess the power connectivity as the company wants to connect the mine to Electricity Supply Corporation of Malawi (Escom) grid unlike in the past when it was using diesel generators.
Malunga, who is a former minister of Energy and now a mining consultant, said: “The fresh study is necessary just because after 10 years of care and maintenance some parts of the mine have been covered with vegetation, among others, which should be cleared.
“Again the most important part is to assess the terrain where construction of a power line by Escom will take place and that has to be done before the actual construction commences,” he said.
Malunga is projecting the exercise to be completed by first quarter of 2025 while expecting that Escom would start construction of the power line somewhere in March, a project likely to take six months.
In an annual report, Lotus said as its definitive feasibility study highlighted, connection to the Malawi national grid, which is sourced predominantly from hydro, is a critical part of the company’s low carbon strategy.
The report said the preferred options will be taken forward to the next stage, which will involve a commercial working group to consider the business case for upgrades and new installations required, including negotiating the electricity tariffs that will be applicable to Kayerekera.
Lotus is set to restart the project after observing the increasing global uranium prices.
