Company announces key step towards commissioning of processing plant
Lotus Resources has produced the first batch of triuranium octoxide (U3O8), also known as yellowcake, from its 85%-owned Kayelekera uranium mine in the Karonga District of northern Malawi.
The Australia-based company said the development marks a key step towards the commissioning of the processing plant at Kayelekera.
The past-producing Kayelekera site was placed on care and maintenance in 2014 due to low market prices for uranium.
Lotus Resources has said that production at Kayelekera is set to increase to an annual rate of 2.4 million pounds (mlb) of U3O8 by the first quarter of 2026. The company is targeting production of 200,000 pounds U3O8 per month.
U3O8 is a type of uranium concentrate powder used to produce fuel for nuclear power reactors.
Lotus managing director Greg Bittar said: “We are positioned to join the ranks of global uranium producers with the first yellowcake from Kayelekera.
“This terrific milestone signifies the first production since the mine was put on care and maintenance in 2014 and Lotus is delighted to be making such progress at what is a crucial time for the global uranium market.”
The company said the restart of Kayelekera was achieved on schedule and within the projected budget.
In October 2024 the company released an accelerated restart plan that confirmed Kayelekera ranks as one of the lowest capital cost uranium projects globally, with initial restart capital expenditure to first production of $50m (€42m).
The next step involves sending samples to uranium converters for qualification, in preparation for the first uranium dispatch from the site at the end of 2025.
Lotus Resources already has four binding sale arrangements in place for up to 3.8mlb of uranium, with a minimum commitment of 3.5mlb, starting from 2026.
These agreements include contracts with three leading North American power utilities, the company said.
