By Mcloyd Chilangiza:
Lotus Resources Limited, managers of Kayelekera Uranium Mine in Karonga District, has raised about $53 million more in capital as it eyes steady-state uranium production at its Kayelekera mine by the second quarter of this year.
In a statement released last week, the Australia Stock Exchange-listed mining company said the money was raised from investors through a share sale.
Under the share sale, Lotus issued about 35.4 million new shares at A$2.15 each.
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The funding comes at a time the company has resumed mining operations at Kayerekera.
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The firm resumed mining operations in August 2025 and expects to make its first uranium export by the second quarter of this year.
Lotus, which owns 85 percent shares of Kayerekera Uranium Mine in Karonga, said the additional funding would be used to complete infrastructure projects, including the construction of a sulphuric acid plant that is needed for uranium processing.
The miner says the money would be used for facilitating the connection of the mine to the national electricity grid.
Recently, Lotus Resources Limited cited insufficient sulphuric acid supply chain challenges, warning that the constraints could affect its monthly production target of 200,000 pounds.
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Lotus Resources Limited Managing Director and Chief Executive Officer Greg Bittar said the funding had restored the company’s confidence as it moves toward profitability.
“We are delighted with the support we have received from existing and new institutional shareholders, which provides us with an enhanced liquidity runway during ramp-up to reach steady-state production and expected first shipment in Q2 CY2026,” he said.
Mining policy expert Paul Mvula described the funding package as an accelerator for production at the mine.
Mvula said access to the capital would address constraints that have been slowing down mining operations.
“We are looking at this package as an acceleration tool for production. When companies have such inflows, in terms of funding, it allows them to move faster and accelerate production,” Mvula said.
He said the financial boost would support investment by enabling the company to acquire equipment, secure adequate working capital and ease logistical and technical challenges.
The Malawi (MW)2063 vision, the country’s long-term development blueprint, identifies mining as a key driver for achieving targets under the MW2063 First 10- Year Implementation Plan.
Mining currently contributes about 1 percent to Malawi’s gross domestic product, with prospects of rising to 12 percent by 2027, according to THE Malawi Chamber of Mines.
