Modern Mining October 2025

URANIUM

The Kayelekera plant at night.

Drying and packaging area of the plant.

As part of its programme to upskill its workforce, Lotus Resources is providing training and career opportunities to local community members working at the mine. “We have a terrific team consisting of over 90% Malawian employees.” In its Restart DFS, Lotus Resources identified the opportunity to reduce power costs and carbon emissions by investing in a connection to Malawi’s electricity grid. Lotus has been working with the Malawian electricity commission, ESCOM, to put this into action. The power from the grid will be sourced from the recently upgraded hydropower facility located in the south of the country. The investment in the powerline and associated infrastructure will soon allow villages to connect to the powerline, electrifying homes in the local community for the first time. “Investment in the power line, scheduled for completion before the end of 2026, comes at a cost of some $20 million.” Offtake agreements The company inked binding offtake agreements for up to 3.8 m lbs of Kayelekera uranium production from 2026 to 2029. The agreements are for a fixed US dollar price based on the current long-term price, escalated by inflation. “We signed four contracts: three are with top tier North American power companies, the fourth is with a global uranium trading house called Curzon.” “Combined, these contracts account for roughly 35% of our production over the next four years – 2026 through to

2029. The contracts, which are based off the recent term price of US$80 lbs, are important because they offer a foothold with key long-term customers and allow us to capture what we think will be an attractive margin given the strengthening outlook for uranium. Aside from the deals signed, we will have sufficient product on-hand to take advantage of improved prices as the market rallies further. Importantly, potential off takers are keen to secure a portion of the remaining 65% of uranium production and product beyond 2029 which remains uncommitted. Currently there are several North American utilities seeking large quantities of uranium to power their nuclear plants.” To test the appetite for product from Kayelekera in the spot market, the company sold “a small parcel of uranium in the spot market in early 2025 and received a highly attractive price for its parcel” – indicating robust demand for its product. Growth strategy beyond Kayelekera According to Bittar, Kayelekera, the current focus of Lotus Resources’ growth strategy, is the only sizable new source of uranium globally for the next few years. “Certainly, till the end of the decade, when other projects including large-scale uranium projects in Canada are planned to come online. Until then, Kayelekera is the only meaningful new supplier of uranium. Now that the project is in production, it is on track to unlock significant free cash flow, which will also be used to grow our footprint in Malawi. We look forward to spending exploration dollars, both near mine and within a

14  MODERN MINING  www.modernminingmagazine.co.za | OCTOBER 2025