Yellowcake production begins at Kayelekera

Kayelekera first produced uranium in 2009, but when Australian-based Lotus Resources acquired the project from Paladin Energy in 2020 it had been under care-and-maintenance since 2014. Last year, the company announced plans for an accelerated restart of the project, and earlier this month Malawi's President Lazarus McCarthy Chakwera took part in a ceremony to officially inaugurate the mine as it moved into the final commissioning stages.

Samples from Kayelekera will soon be sent to each of the three western uranium converters for qualification ahead of the first shipment of uranium from the site. In the meantime, the company will continue to focus on ramping up production and building inventory in anticipation of making its first uranium shipment later this year, Lotus Managing Director Greg Bittar said.

The company is now "positioned to join the ranks of global uranium producers" at a crucial time for the global uranium market, Bittar noted. "Achieving this milestone on budget and within the timeline of Q3 CY25 targeted at the beginning of Kayelekera's accelerated restart is a testament to the quality and dedication of Lotus' team, contractors and all stakeholders," he said.

Lotus plans to ramp up to a steady-state production level of 200,000 pounds U3O8 (77 tU) per month in the first quarter of 2026. The company currently has four binding sale arrangements for a minimum of 3.5 million pounds, and up to 3.8 million pounds U3O8 of Kayelekera's output starting from 2026, including with three leading North American power utilities, the company said.