Lotus Resources has moved away from the traditional mining contractor model at its flagship Kayelekera project in Malawi, opting instead for full operational control, a shift that could redefine cost structures for uranium mining in Africa.
With equipment already en route and $30 million in working capital secured, the company’s decision to become an owner-operator marks a rare departure from industry norms.
It also signals strong confidence in its team, operating model, and the Malawian site itself.
The Kayelekera mine, located in northern Malawi near Karonga, was once the country’s flagship uranium operation. Between 2009 and 2014, it produced approximately 11 million pounds of uranium before being placed on care and maintenance due to low commodity prices.
Now under the control of Lotus, which holds an 85% stake through its local subsidiary, Lotus Africa, the mine is set to resume production in the third quarter of 2025.
Cold commissioning of the processing plant is already underway. This phase, which tests equipment systems without using ore, is nearly complete in key areas such as leaching, resin-in-pulp, and tailings disposal.
Hot commissioning, where uranium-bearing ore is introduced, is expected to begin shortly.
However, it’s Lotus’s strategic shift in mining operations that has captured industry attention. Instead of outsourcing mining activities, the company is investing around US$8 million in equipment and tools to manage operations internally.
This owner-operator model provides tighter control over run-of-mine (ROM) material and the construction of tailings storage—crucial factors in a region with limited large-scale mining infrastructure.
“We built the operational team with experienced mining professionals. In a region with few active contractors and virtually no economies of scale for third-party mining services, it became clear that self-management was the superior route,” said Lotus Managing Director Greg Bittar in a statement.
The first ore to be processed will come from existing stockpiles, with full mining operations set to begin in the fourth quarter of 2025. Equipment for stockpile management is already in place and operational.
This approach is expected to significantly reduce costs. According to Lotus’s Feasibility Engineering and Economic Design (FEED) program, mining accounts for about one-third of the total C1 cash costs—estimated at US$34.5 per pound of U₃O₈.
By eliminating contractor overheads and administrative duplication, the company anticipates considerable long-term savings.
The operational transition is supported by new funding. Lotus has increased its working capital facility with Standard Bank from US$20 million to US$30 million and is finalising an US$8.5 million equipment financing deal with Malawi’s First Capital Bank.
Both financing packages are in advanced stages, pending final documentation and credit approval.
The working capital facility gives Lotus financial flexibility to cover expenditures until Kayelekera becomes cash-flow positive, expected soon after production restarts.
The equipment loan will cover 70% of mobile machinery and 80% of vehicles and buses, with competitive interest rates below 10% and a six-month grace period.
“This level of lender support reflects growing confidence in our restart strategy,” said Bittar. “It also underscores Kayelekera’s viability and our ability to deliver value.”
Lotus is also reshaping its social licence to operate. The company plans to hire about 200 workers for its mining division, with the majority being Malawian.
A mix of expatriate experts and local talent will lead operations, supported by training and recruitment programmes designed to foster community involvement and skills transfer.
Operations will follow a 4-4-4 roster (four-day shifts, one rest day, four-night shifts, four days off), aimed at promoting both efficiency and employee wellbeing. This schedule will be applied across mining, maintenance, and processing teams.
With a proven resource of 23 million pounds of U₃O₈ and a total inventory exceeding 46 million pounds, Kayelekera is a cornerstone of Malawi’s mining future.
Lotus also owns the Letlhakane uranium project in Botswana, further positioning itself as a leading pan-African uranium developer.
Still, it is in Malawi—where Kayelekera is a key foreign investment asset—that Lotus is making its most immediate impact.
By taking operational control, investing in local talent, and aligning its financing with restart milestones, Lotus is betting not just on rising uranium prices but also on Malawi’s potential as a stable, scalable mining jurisdiction.
If all goes to plan, Kayelekera will resume uranium production in the next quarter, a major milestone in the country’s mining revival.
For Lotus, success will depend not only on pounds produced but on the long-term sustainability of its bold, self-managed strategy.
Collins Mtika produced this story for the Centre for Investigative Journalism Malawi (CIJM), as part of the Centre’s aim to expose corruption, hold power accountable, and amplify marginalised voices. CIJM: ‘Uncovering the Truth. Empowering change’.
