Lotus Resources bets on experienced partner in milestone move for Malawi’s Mining Sector
Lotus Resources, the Australian company behind Malawi’s Kayelekera uranium project, has selected a seasoned South African mining contractor to lead operations at the soon-to-reopen mine—a major step forward in the country’s efforts to revitalize its mining industry.
The contractor, whose identity has not yet been officially disclosed, was chosen following what Lotus described as “an extensive contract tender process” aimed at identifying a partner with strong technical expertise and solid financial backing.
“The preferred contractor has extensive experience in mining and construction and has a significant balance sheet,” Lotus stated in its quarterly activities report released on April 30.
This appointment marks a key milestone in Lotus’s accelerated restart program at Kayelekera, where uranium production is set to resume in the third quarter of 2025.
The initial phase will involve processing existing stockpiles, with new mining activities to follow.
Equipment and personnel are expected to begin mobilizing in the coming months. The operation will largely rely on Malawian workers, who will live in the project’s accommodation village and work directly alongside Lotus staff.
“The mining personnel will work side by side with the Lotus team,” the company confirmed.
Lotus has already completed more than 80% of the site’s mechanical and electrical refurbishment. All critical operational roles have been filled, and over 300 Malawian and expatriate workers are already deployed on-site as part of the restart team.
The project’s revival comes amid renewed global interest in nuclear power, with Uranium gaining recognition as a key low-carbon energy source. Kayelekera previously produced around 11 million pounds of Uranium between 2009 and 2014 before operations were halted due to falling market prices.
Lotus acquired an 85% stake in the mine in 2020, with the Malawi Government retaining the remaining 15%. Since then, the company has invested heavily in site upgrades and community engagement.
A major achievement came in January 2025 with the signing of a Community Development Agreement (CDA). The agreement commits 0.45% of the mine’s revenue to local development initiatives, with project selection driven by surrounding communities.
Oversight will be handled by a steering committee comprising representatives from each Village Development Committee in the area. Funding priorities will include healthcare, education, and infrastructure.
Economists view the appointment of a well-resourced contractor as a vote of confidence in the future of Malawi’s mining sector. They note that uranium mining requires advanced technical skills and equipment that are often not available locally—making the contractor’s role especially important.
However, environmental concerns remain. Kayelekera’s proximity to Lake Malawi—a UNESCO World Heritage site and critical freshwater resource—has long drawn scrutiny from conservation groups.
In response, Lotus has submitted updated Environmental and Social Impact Assessment (ESIA) and Radiation Licence applications. Approvals are expected in the coming weeks. The company has also pledged continuous environmental monitoring and has invested in water management infrastructure.
With Uranium prices currently stable at around US$64 per pound—and long-term contracts reaching up to US$80/lb as of March 2025—Lotus has already secured binding offtake agreements for up to 3.8 million pounds of Uranium, ensuring financial security during the initial production phase.
To reduce costs and environmental impact, Lotus plans to connect the mine to Malawi’s national power grid by 2026. Until then, operations will be powered by a refurbished onsite diesel plant.
As Kayelekera prepares to resume operations as Malawi’s only active uranium mine, attention is turning to the South African contractor. Its technical expertise and financial strength are expected to play a critical role in ensuring a successful and sustainable restart.
Initial mining is expected to begin shortly after mobilization, positioning Kayelekera to re-emerge as a key player in Africa’s uranium sector.
