Lotus Resources has produced the first batch of triuranium octoxide (U3O8), commonly known as yellowcake, from its 85%-owned Kayelekera Uranium Mine in northern Malawi’s Karonga District, approximately 650 km north of Lilongwe.
This milestone marks a significant step toward the commissioning of the mine’s processing plant. Kayelekera, a past-producing site, was placed on care and maintenance in 2014 due to low uranium prices.
Lotus Resources has outlined plans to ramp up production to an annual rate of 2.4 million pounds (mlb) of U3O8 by Q1 2026, targeting a steady-state output of 200,000 pounds per month.
Greg Bittar, Managing Director of Lotus Resources, said: “We are positioned to join the ranks of global uranium producers with the first yellowcake from Kayelekera. This milestone represents the first production since the mine was placed on care and maintenance in 2014, and Lotus is delighted to achieve this progress at a crucial time for the global uranium market.”
The company confirmed that the restart of Kayelekera was completed on schedule and within budget. The next step involves sending samples to three Western uranium converters for qualification, ahead of the first uranium dispatch from the site at the end of 2025.
Lotus Resources already has four binding sale agreements for up to 3.8 mlb of uranium, with a minimum commitment of 3.5 mlb, starting from 2026. These contracts include agreements with three major North American power utilities.
Between 2009 and 2014, the Kayelekera Uranium Project produced approximately 11 mlb of uranium. Following Lotus Resources’ acquisition of the project in 2020, a definitive feasibility study was completed in August 2022. An accelerated restart plan, finalised in October 2024, confirmed Kayelekera as one of the lowest-capital-cost uranium projects globally, with an initial restart capex of $50 million (A$76.82 million).
