By Collins Mtika
In a significant development for Malawi’s mining sector, Lotus Resources Limited has secured term sheets worth up to $38.5 million USD (approximately MWK 45 billion) to finance the restart of the Kayelekera uranium project, located in the northern part of the country.
The funds, which include equipment finance and working capital facilities from Standard Bank Plc and First Capital Bank Limited, are expected to propel the project into production by the third quarter of 2025.
The Kayelekera uranium mine, historically a key player in Malawi’s mining landscape, produced approximately 11 million pounds of uranium between 2009 and 2014. However, due to unfavorable market conditions, operations were suspended in 2014.
With this renewed investment, the project is set to re-emerge as a critical contributor to both Malawi’s GDP and employment landscape.
Managing Director and CEO of Lotus Resources, Greg Bittar, expressed his optimism, stating, “These finance facilities provide Lotus with the working capital liquidity and funding flexibility necessary to rapidly progress our restart program. The competitive pricing and terms reflect the banks’ confidence in the quality of the Kayelekera project and the progress of our accelerated restart program.”
The restart is backed by an $82 million USD (approx. MWK 96 billion) equity placement completed in 2024. With the additional $38.5 million secured, Lotus’s total funding now stands at $135.5 million (MWK 158 billion), ensuring adequate resources to achieve positive cash flow upon production.
The financing includes $18.5 million (MWK 21.6 billion) in equipment finance for acquiring and refinancing essential machinery and $20 million (MWK 23.4 billion) in working capital to sustain operations until the project becomes self-sufficient.
These agreements underline a high level of confidence in Malawi’s resource sector, bolstered by global demand for clean energy solutions such as nuclear power.
Lotus has already secured uranium offtake agreements with Curzon Uranium and PSEG Nuclear LLC for 1.5 million pounds of uranium between 2026 and 2029, ensuring a steady market for its product. Discussions with North American power utilities are ongoing, hinting at further long-term contracts.
The Kayelekera project promises to be a game-changer for Malawi. With over 200 personnel already mobilized on-site and critical equipment ordered, the project is expected to create hundreds of jobs directly and indirectly.
Local businesses in Karonga District stand to benefit from increased demand for services and supplies.
Moreover, the restart of Kayelekera is expected to inject much-needed foreign exchange into Malawi’s economy. Uranium, as a high-value commodity, has the potential to diversify Malawi’s export base and reduce its dependency on traditional cash crops such as tobacco.
While the global uranium market shows promising growth due to increased adoption of nuclear energy, challenges such as fluctuating commodity prices and environmental concerns remain. However, Lotus has shown commitment to sustainable practices and community engagement.
The company emphasized its focus on creating meaningful, lasting impacts in the regions where it operates. With an 85% ownership stake in Kayelekera and a 100% interest in the Letlhakane uranium project in Botswana, Lotus is positioning itself as a leading uranium producer in Africa.
The anticipated restart of Kayelekera marks a pivotal moment for Malawi’s mining sector. It signals not only the revival of a key economic contributor but also renewed investor confidence in the country’s resources.
As Malawi strives to achieve its development goals under Vision 2063, projects like Kayelekera could be the cornerstone of a brighter economic future.
As the countdown to the third quarter of 2025 begins, all eyes will be on Kayelekera, a project poised to put Malawi on the global uranium map once again.