By Kingsley Jassi:
Lotus Resources, the owner of Kayelekera Uranium Mine, has raised AU$130 million (about $87 million) for financing the reopening of the mine in Karonga.
In a stakeholder update released this week, the company said this means the project has been fully financed as key technical staff has also been recruited to do the refurbishment of the plant and operations.
The company projects to start operations in the third quarter of 2025 after over 10 years since the mine was suspended following a slump of uranium prices on the global market.
“The successful placement of A$130 million, along with A$25 million cash we had at the end of September and SPP, ensures that we are fully funded to restart Kayelekera production in Q3 2025,” says the company’s chief executive officer Greg Bitter in a commentary about the development.
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The company further says the progress to date is clearly visible with a whole host of site activities and work streams focused on lifting the tailings storage, repairing, refurbishing and recommissioning plant and equipment along with plant structural modifications.
“With a new team in place on site, safety is of utmost priority and so we have ensured the necessary management and supervision are in place to strive for a culture of, and commitment to, zero harm,” Bitter assured.
Key operations management personnel have been recruited, along with over 150 persons that include local and expatriate workforce expected to grow in coming months “to ensure the restart is completed on schedule and the company is ready for operations”.
The company recently signed a Community Development Agreement with Karonga District Council to ensure return of benefits from the countries largest mine built so far.
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According to Karonga District Commissioner Frank Mkandawire, the council will ensure the company provides businesses to companies in Karonga apart from other proposed social development activities.
The company recently signed two agreements with a London-based Curzon Uranium to supply a minimum of 1.8 million lbs (just over 816 tonnes) of uranium and Public Sector Enterprise Group (PSEG) of New Jersey in United States of America to supply over 1.5 million lbs (630 tonnes), providing strong position of the Kayelekera reopening as more offtake agreements were in the offing.
