By Kingsley Jassi:
Developments in the global uranium market continue to raise prospects for Kayelekera minerals that are set to hit the market in 2026.
This is because Lotus Resources, the licensee for the deposits, observes increasing global prices amid supply deficits.
The mine was put to care and maintenance in 2014 by the previous owner, Paladin Africa, after uranium prices tumbled, causing unprofitable operations.
The company observes, in its latest update, that prices of uranium continue to rise above commercially sustainable levels, ranging between $79 and $107 per pound ($174 to $236 per kilogramme) while the cost of uranium production at Kayelekera is among the lowest in the world, with a capital intensity ratio of $21 per pound.
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“High margin economics provides upside exposure in the current uranium pricing environment. Restart timing matches a growing structural supply deficit and scarcity of new projects entering production,” the company observes.
Lotus Resources and the Malawi Government jointly own Kayelekera Uranium mine, which has an estimated revenue generation amounting to $301 million after tax deductions.
The mine recently announced more discoveries in the Livingstonia area, which promises an elongated mining period.
The rising prices present increasing benefits which will come in the form of royalties at 5 percent of total revenue, taxes and dividends while the company says it eyes its revenue to finance development of its larger mining venture—that is, Letlhakane in Botswana.
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The restart of Kayelekera mine has been accelerated and is expected in the 3rd quarter of 2025, five months earlier than initially planned, and will run on diesel power ahead of grid connection.
Lotus has forecast a steady uranium market which it says currently experiences deficits while 78 new uranium power plants across the globe are at different stages of development, offering new demand in the long term.
The company sees demand being supported by the rapid increase of demand in China, which is building 30 new reactors aside from 22 countries that signed up to the clean energy goal of tripling global nuclear energy capacity by 2050.
“Lotus is in advanced negotiations with other Tier-1 utility counterparties to secure offtake for production between 2026 and 2029. These discussions aim to increase the fixed price escalated contracts to 30 percent of production,” said the company.
Meanwhile, Principal Secretary for Industry and Trade Christina Zakeyu anticipates that the uranium mine and other upcoming projects would set in motion the long lost export diversification momentum.
