Power Play: Lotus Resources taps experienced South African Contractor to Restart Malawi’s Kayelekera Uranium Mine

Lotus Resources, the Australian firm behind the Kayelekera Uranium Project, has selected a seasoned South African mining contractor to lead operations at the soon-to-be-reopened mine. This move marks a significant milestone in the country’s renewed push for industrial growth through mining.

The identity of the contractor remains under wraps, but Lotus says the partner was picked through “an extensive contract tender process” targeting firms with both technical depth and financial muscle.

“The preferred contractor has extensive experience in mining and construction and has a significant balance sheet,” Lotus revealed in its April 30 quarterly report.

Set to resume uranium production in Q3 2025, the Kayelekera mine will initially process existing stockpiles before ramping up new mining operations. Equipment and personnel are scheduled to begin mobilization in the coming months, with a majority of roles filled by Malawian workers, who will live in the site’s accommodation village and work directly alongside Lotus staff.

“The mining personnel will work side by side with the Lotus team,” the company confirmed.

With over 80% of mechanical and electrical refurbishment already completed, more than 300 Malawian and expatriate workers are currently deployed at the site.

The mine’s restart coincides with a global shift toward nuclear power as a clean energy source. Between 2009 and 2014, Kayelekera produced approximately 11 million pounds of uranium before closing due to weak global prices. In 2020, Lotus acquired an 85% stake, with the Malawi Government retaining 15%.

In January 2025, Lotus signed a Community Development Agreement (CDA), pledging 0.45% of revenue toward local projects, including healthcare, education, and infrastructure—all selected in consultation with Village Development Committees.

While the restart brings hope for economic growth, environmental concerns persist, particularly due to the mine’s proximity to Lake Malawi, a UNESCO World Heritage site. In response, Lotus has submitted an updated Environmental and Social Impact Assessment (ESIA) and Radiation Licence application, with approvals expected in the coming weeks. The company has also invested in water management infrastructure and pledged ongoing environmental monitoring.

On the financial front, Lotus is well-positioned. With uranium prices steady at US$64/lb and long-term contracts fetching up to US$80/lb, the company has secured binding offtake agreements for up to 3.8 million pounds of uranium—ensuring a secure revenue base as production resumes.

To curb operating costs and emissions, Lotus plans to connect Kayelekera to the national power grid by 2026. In the interim, operations will be powered by a refurbished onsite diesel plant.

As Malawi’s only uranium mine prepares to re-enter the global market, the spotlight is now on the South African contractor—a key player in ensuring the success, safety, and sustainability of Kayelekera’s return.

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