Lotus Resources Limited has commenced high-grade ore processing at its flagship Kayelekera Uranium Project in Malawi, which is a key milestone as the company prepares for first uranium production this quarter.

The processing plant’s leach tanks are now operating at full capacity, with reagents being dosed to initiate uranium extraction. Final commissioning is underway across the precipitation, drying, and packaging circuits. This progress signals the start of sustained hydrometallurgical operations and confirms that the project remains on schedule.

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Lotus Managing Director Greg Bittar commented, “We continue to make great progress towards the production of our first uranium, with high-grade ore now being processed. We are also investing in the critical infrastructure to support the long-term optimisation of Kayelekera to ensure we are on the pathway to lowering costs and operating Kayelekera in the most ESG-friendly manner for the maximum benefit of the local communities, Malawi, and the overall environment.

“In addition to the significant reduction in our cost of production, Kayelekera’s connection to Malawi’s electricity grid, mainly supplied by carbon-free hydroelectric power, will deliver environmental and social benefits. Importantly, local communities along the powerline route will be able to work with the Malawi power utility, ESCOM, to connect to the powerline and have access to electricity for the first time,” said Bittar.

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Lotus enters final phase of commissioning at Kayelekera

“There will also be significantly reduced diesel consumption and associated logistics activity to and from Kayelekera. With the mobilisation of equipment and operators, we have commenced work on the tailings storage facility infrastructure, comprising an initial first lift to raise the level of the northern embankment, including the construction of buttresses, foundation establishment, linings, etc., to form the foundation for future lifts to accommodate the 10-year life of the mine.”

Highlights:

• The start of leaching marks a transition to full operational ramp-up. The first uranium product is expected this quarter.
• Work will now begin on connecting Kayelekera to Malawi’s national power grid, largely supplied by hydroelectric energy. Completion is targeted by the end of 2026, delivering expected cost savings of US$5–6 per pound of uranium and significantly reducing diesel use and carbon emissions. The grid connection will also allow rural communities along the route to access electricity for the first time.
• Lotus has accelerated TSF development. Phases 1A and 1B will now be built concurrently to improve efficiency. The facility will support the mine’s full 10-year operational life, with Phase 1A fully funded and Phase 1B expected to be funded from existing resources.
• The company signed a finance agreement with First Capital Bank Plc to fund mining and mobile equipment. The facility has a five-year term, with no repayments in the first six months and interest below 10% per annum.
• Lotus holds A$75.9 million in cash (unaudited as of June 2025), with no debt drawn and the restart capital budget firmly capped at US$50 million.