Lotus Resources has produced the first batch of triuranium octoxide (U3O8), commonly known as yellowcake, from its 85%-owned Kayelekera Uranium Mine.
The Kayelekera Uranium Mine is located in the Karonga District of northern Malawi, approximately 650km north of the capital Lilongwe.
The development marks a key step towards the commissioning of the processing plant at Kayelekera.
The past-producing site was placed on care and maintenance in 2014 due to low market prices for uranium.
Lotus Resources has outlined that the production at Kayelekera is set to increase to an annual rate of 2.4 million pounds (mlb) of triuranium octoxide by the first quarter of 2026 (Q1 2026). This ramp-up targets a steady-state production level of 200,000 pounds (lb) per month.
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 has confirmed that the restart of Kayelekera was achieved on schedule and within the projected budget.
The next step involves sending samples to each of the three western 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 Kayelekera Uranium Project produced approximately 11mlb of uranium between 2009 and 2014.
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 capital expenditure of $50m (A$76.82m).
