Investor upbeat on Kayelekera
Minerals exploration and development firm, Lotus Resources Ltd, has expressed optimism on prospects to resume activities at its Kayerekera Uranium Mine in Karonga District, saying its economic value remains high.
The firm says it was still monitoring uranium price movements on the international market before it moves to fully commence operations.
In a report to investors and stakeholders detailing the mine’s performance and outlook, the firm says it positioned to be a strong uranium producer, especially as technologies and other alternatives not available during the previous operations have been identified.
It notes that the mine is already a proven uranium producer from the time the original owners, Paladin Energy, operated it from 2009 to 2014.
The report notes that, among other things, ore sorting technologies have improved in the last decade, which could lead to extended mine life, decreased operating costs and an increase in annual production.
It adds that previous operations at Kayelekera were powered by diesel generators as the only viable option, which led increase in power costs.
“Lotus has significantly advanced a Power Assessment Study reviewing a number of power solutions such as connecting to the national grid, generating power from the excess steam produced in onsite acid plant and renewable energy sources, which will both significantly reduce carbon dioxide emissions and costs compared to the previous operation,” the report reads.
Lotus Resources Managing Director Keith Bowes said the firm is positioned for the next uranium cycle.
“We have a very strong cash position at the moment, with significant value upside for our investors. When you compare us to our peers, we believe there is also significant value upside for the project when we start to put through these new technologies as well as the exploration potential as well. There is a strong board and management in place that has got both African and uranium experience,” Bowes said.
The company recently had its exploration and mining licence renewed, and is still to begin mining operations owing to a fesibility study to be completed by mid-2022.
In a recent interview, Ministry of Mining Principal Secretary Joseph Mkandawire said potential earnings from the mine would contribute to development of the country.