Australian mining firm Lotus Resources Limited has said connecting its Kayelekera Mine in Karonga to grid power could cost $19.7 million (about K34.5 billion).
In an announcement on the Australian Stock Exchange yesterday, the firm said connecting to Malawi’s largely hydro-powered national grid is expected to reduce power costs by $5 to $6/lb and significantly cut carbon emissions and diesel logistics.
According to Lotus, following the execution of supply and construction contracts, work is set to commence on Kayelekera’s power grid connection, with completion targeted by the end of 2026 calendar year.
The firm observed that under the Accelerated Restart Plan, the powerline construction was deferred to allow operations to commence using the existing onsite diesel power station.
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“The total contracted cost for the powerline and substations is $19.7 million-broadly in line with the Plan’s estimate of $20.6 million.
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“A Battery Energy Storage System (BESS), valued at approximately $3.5-4 million, will be installed in FY2027 to ensure power continuity during grid disruptions or diesel backup use,” the firm said.
It further said given the strong economic returns and Lotus’ ongoing focus on balance sheet flexibility, the grid connection will be funded on balance sheet through the construction and commissioning period.
According to Lotus, processing of high-grade ore has commenced, marking a key milestone in the restart and ramp-up of operations.
“All leach tanks are now operating at full capacity, with reagents being actively dosed into the circuit to initiate and sustain uranium extraction.
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“The commencement of uranium leaching represents the beginning of sustained hydrometallurgicall operations and reflects strong performance across the front-end of the plant. Final commissioning of the precipitation, drying, and packaging circuits is underway, with first product expected this quarter,” the firm said.
Lotus Managing Director Greg Bittar said the firm continues to make great progress towards the production of its first uranium with high grade ore now being processed.
“We are also investing in the critical infrastructure to support the long term optimisation of Kayelekera to ensure we are on the pathway to lowering costs and operating Kayelekera in the most ESG friendly manner for the maximum benefit of the local communities, Malawi and the overall environment,” he said.
Speaking recently when he visited the mine, Minister of Mining Ken Zikhale Ng’oma said the government is optimistic that the Kayerekera mine would enhance the country’s economy once it becomes operational in September this year.
